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OTCA demands 50pc share in fuel transportation

Business Recorder • • 1 min read

OTCA demands 50pc share in fuel transportation

The Oil Tankers Contractors Association (OTCA) has asked the Federal Petroleum Ministry to allocate half of fuel transportation to road tankers, warning that reduced volumes could drive contractors out of business. Business Recorder reported that the association considers current arrangements financially unviable and says its members are suffering serious losses.

OTCA said discussions on the white oil pipeline had not produced a settled plan, despite studies prepared by the Pakistan Institute of Petroleum and submitted to the Oil and Gas Regulatory Authority (Ogra). It alleges the resulting policy shifts transport share towards pipelines and says a smaller road fleet could leave fuel distribution vulnerable during conflict or pipeline failure.

The association also accused oil marketing companies of seeking a larger pipeline allocation through Ogra, and urged authorities to preserve an equal split between road tankers and the pipeline. It recalled that road transporters helped maintain fuel availability when pipeline supplies were suspended during the last Indo-Pak war.

At a glance

  • OTCA is seeking an equal division of fuel transportation between road tankers and the white oil pipeline.
  • The association says reduced road transport allocations are causing losses and threaten contractors’ operations.
  • OTCA warned that a weakened tanker fleet could hinder fuel supplies during emergencies.
Sectors:TransportOil & Gas Marketing Companies

Originally reported by Business Recorder

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