Oil Dealers Faisalabad

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Because of fuel shortage a panic buying in case of fuel (Specially Super) at Stockiest / Petrol pump level is being experienced.

By Saturday or Sunday this panic may get transferred on to the public.

Presently Stockiest at Faisalabad is selling product at Rs 80/- per litre to petrol pumps after purchasing it from OMCs (where as whole sale purchase price for Super is 75.50).

DCO Faisalabad may direct OMCs to give priority to local petrol pumps instead of Stockiest as It may result into black marketing of petroleum products at Faisalabd.

This aspect can also be taken care of, by asking list of product deliveries (Petrol pump wise) at Faisalabad local, during shortage period.

Please offer your comments regarding this move by an oil marketing company on motor way M3. What would be its impact on oil business and on other oil marketing companies ?

http://arynews.tv/en/pol-prices-likely-to-go-up-next-month/

POL prices likely to go up next month ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has proposed to increase petrol rates by Rs. 4.44 per liter from April 1, ARY News reported.

http://pakbiz.com/finance/petroleumprices.html

Petrol Prices in Pakistan Today - Current Fuel Petroleum & Diesel Price in Pakistan Petrol Prices in Pakistan - Find Petrol Prices in Pakistan Today, and current petroleum products prices. fAlso find fuel prices like petrol, high speed diesel, light speed diesel, HOBC, and Kerosene oil prices in Karachi, Lahore, Peshawar, Islamabad, Hyderabad and Rawalpindi.

http://arynews.tv/en/ogra-recommends-cut-petroleum-prices-2/

OGRA recommends cut in petroleum prices Oil and Gas Regulatory Authority (OGRA) has forward a summary to the Prime Minister Nawaz Sharif seeking substantial cut in petroleum prices.

Govt intends displaying these stickers on fuel selling sites with a proper site code allotted to each site.
Is there any body who can address the (ROOT CAUSE) issue of short deliveries by companies and shortages due to temperature and gravity issue in hot weathers???
More over who would be taken to task when site is dry because certain OMCs deliver the product in 72 HOURS after taking the payment in advance ???
Is there any body who can address the route cause of such issues ???
WHEN WOULD WE END UP WITH SUCH AN EYE WASH ???

Around Gutti Terminal PARCO Faisalabad up till Nishatabad over head bridge and at all terminals of PARCO there are hundreds of Duba Station and Godowns.
These purchase points are purchasing the stolen fuel products from tank lorry drivers and selling millions of liters per month to area like bus stand Faisalabad and to far flung areas (On a price Rs. 7 to 8 less than the purchase price of an oil dealer). Such selling / purchase points in Gutti area and in General Bus stand (against explosive act) have their storage tanks places or buried in small shops which may explode any time.
The concerned government agencies, need to verify the source of such receipts and exercise a proper check on such activities.
Due to anomaly like clause of temperature and gravity, it is bound to happen and this is the reason the oil dealer / petrol pump holder is being deprived of his right to get complete product at his site.
Once the oil dealer is purchasing product on F.O.R basis. It is the moral obligation for OMCs, PARCO and OGRA (the regulatory authority) to arrange complete delivery and a carry out crackdown against such heinous activities.

Just a hypothetical example,
Once a Tank lorry of 10000 Super is checked and invoiced in peak summer season at 1100 hrs at a temperature of 32 degrees, and it reports at the petrol pump at a temperature of 47 degree.
The dip should increase by
= Volume x Difference in temperature x Coefficient of volumetric expansion for super i.e.(.00095)
=10000 litres X (47C-32 C) x .00095
= 10000 x 15 x .00095
=142 litres (Amount =142 litres x Rs 104=Rs. 14768/-, where as gross commission of a oil dealer in 10000 litres is roughly Rs. 20000/-)
= 1.42 % of total volume purchased
This volume is never delivered to the site and is drained by carriage contractor. This is the reason Tank Lorry driver is ready to work with the oil company for free even and his rent to Carry 10000 litres in a radius of 30 KM for just Rs. 3100/-

On the other hand when such a supply is decanted in tank and the temperatures of product tanks is 37 degree C.
When this volume with no increase in dip (which is supposed to be 142 litres ) is decanted in tanks it becomes.
= Volume x Difference in temperature x Coefficient of volumetric expansion for super i.e..00095
10000 litres x (37C-47C) x .00095
= 10000 x -10 x .00095
=-95 litres. (Amount =95 litres x Rs 104= Rs 9880/-), this can be subtracted as loss from gross commission of oil dealer i.e. Roughly 20000/- per 10000 litre.
= -.95% (Roughly 1 % of the total volume)
This becomes a loss in product which is faced by site in form of temperature. (Just because rule of the land says dealer will take product by dip).
Note:- This practice remains on from April to November (8 Months) less the period of December to March( where the cycle is reversed with the same pace).
Under such circumstances expecting a fuel selling retailer (Petrol Pump holder) to deliver complete product , is like expecting from a sick cow (whose belly is full of parasites) to deliver complete milk.

Temperature and gravity issue.

Marketing Discipline Guide linesfor RO / SKO Dealerships of Public Sector Marketing Companies of India

The dealer to undertake the following actions:

Park the tank lorry on level ground – allow 10 minutes settling time.
Before starting the operation on the tank lorry, proper earthing /
bonding should be ensured. Portable fire extinguisher of DCP type
should be kept near to tank lorry at a suitable distance. All the tank
lorry discharge hoses should comply with all the safety requirements,
and under no circumstances, plastic/PVC hosepipes should be used.

ii) Check condition of the seal / security lock on the tank lorry delivery
manifold & manhole covers against those mentioned in the invoice.6

iii) Release master valve levers to ensure product fills the pipelines, where
tank lorries are normally calibrated with lines full, before checking dips
(Refer Calibration Certificate).

iv) Dealer to check that the Density of product @ 15 Degree C using ASTM Tables (53B) is within +/- 3.0 Kg/M3 as compared with the challan density for ascertaining quality of product.

v) Ask the tank lorry driver to produce certificate of calibration which
would mention product level and proof level details.

vi) Check Weights & Measures markings on the dip rod at the bottom as
well as at the proof level. As an additional check, verify dip rod
calibration with an standard measuring tape.

vii) Check dips of the product in all compartments with the dip rod duly
certified by Weights & Measures Department and provided with the tank
lorry. Also check for presence of water in each compartment by water
finding paste. Before commencing tank lorry decantation operation, the
sales from the concerned underground tank at the Retail outlet should
be stopped till the completion of decantation.

viii) Having ascertained the quantity of the product by the above method,
draw samples after draining approx. 20 liters of the product from the
manifold from each compartment in a clear glass container for
density/temperature for quality checks.

ix) In case of doubt as to the quality of product, contact the Supply
Location/concerned Area Field Officer for further instructions.
x) After having ascertained quality as per (vii to ix) above, and prior to
decantation, the dealer/his representative shall draw bottom samples
from the Tank lorry and follow instructions as given in 3 tier sampling
procedure (as explained in chapter-2).7

xi) In the event of dip being short as per calibration certificate/water being
detected with water finding paste, the short dip/quantity (including due
to removal of water) should be made up by filling to the correct level
through the dispensing pump and the quantity so filled should be
recorded on the back of all the Invoice copies. Chamber-wise observed
dip and quantity filled through dispensing unit for getting correct level
to be recorded. In case the RO is dry at the time of receipt, measuring
of shortage to be done by drawing product from other compartment and
using calibrated measure. Shortages so recorded should be signed both
by dealer/dealer’s representative and tank lorry driver. After
ascertaining quality & quantity, decant the product in the correct
underground tanks.

xii) After decanting the product, ensure that the tank lorry is fully emptied
of the product before releasing the tank lorry.

xiii) Make appropriate entries in the stock register/stock display board.

xiv) After decanting the product into the tank, at least 50 liters of product
(to displace the line content) should be dispensed through the pump
before taking sample from pump nozzle for ascertaining the density of
the composite product in the storage tank after receipt. The density at
15 Degrees C, thus ascertained should be recorded in the density
register. The density records should be maintained in the format
attached as Annexure 1.

FOR FURTHER DETAILS PLEASE GO THROUGH .

http://www.iocl.com/uploads/MDG_11jan2013.pdf

www.iocl.com

Information like temperature and gravity are not mentioned by OMCs on invoice or delivery note at the time of delivery of the product.
As assumed this information is vital in order to assess the quality and quantity of the fuel product.
To ensure the complete delivery of pure product down to customer level OGRA may have to regularizes such anomalies, so that nobody is denied of his right of purchasing complete product after making the payment.

Oil prices rose in Asian trade Thursday as the US Federal Reserve's view that the economy was growing modestly eased fears it would soon wind down its huge stimulus program.