Business Reporter
QATAR Petroleum (QP) will constitute a committee to look into the alleged malpractices of some petrol stations selling diesel wholesale, a top official of Qatar Fuel Company (Woqod) said.
“QP is cognizant of the situation and a committee will be formed to look into the practices of petrol stations and their contractors,” said Mohamed Khalifa Turki al-Sobai, Vice-Chairman and Managing Director of Qatar Fuel Company (Woqod).
Though it is prohibited for petrol stations to sell wholesale as they are allowed to sell only in the retail market, he said “unfortunately some of them (petrol stations) have abused the situation and (are) putting much pressure (on the supply of diesel).”
However, he did not elaborate on the extent of malpractices but said it was for the appropriate authorities concerned to look into the matter.
If found guilty, Woqod could cancel the agreement with the erring petrol station since it handled only the marketing and distribution, he said.
Asked about market talks that there has been siphoning off of diesel to other GCC countries where prices are high, he said it was not possible since Woqod was in charge of the jetties.
In view of the rising demand, especially from heavy vehicles, whose number increased by 3,500 in May, there were reports of shortage of diesel in Qatar, whose daily consumption is 32,000 barrels.
In view of this, al-Sobai said there were imports from global markets at international prices averaging $75-80 a barrel but for the retail market it was subsidised at $30 a barrel.
“We differentiate the market, the retail customers enjoy the subsidy and international companies will be charged at international prices,” he said, adding some of the local contractors “tried to take advantage” (of the price differential).