DOHA - Qatar Fuel (Woqod), sole suppliers of petroleum products locally, yesterday said there are no plans to increase the prices of diesel or petrol.
Replying to questions at a press briefing about whether the recent supply crisis was going to lead to a price rise, the company's Vice-Chairman and Managing Director, Mohamed Khalifa Turki Alsobai, emphatically stated: "No such move is on the anvil."
Alsobai, however, added that increasing the prices of petroleum products was not the prerogative of Woqod. "It is up to the government to take a decision regarding increasing the prices, but there are no such plans."
He disclosed that Qatar Petroleum (QP) had set up a committee to look into alleged irregularities by some filling stations during the recent supply crisis.
Some petrol stations are understood to be supplying diesel to tankers in breach of contract signed with Woqod. "Some people are abusing their right to access the fuel from us," he said.
Asked if he was aware that some filling stations were selling diesel on the black market taking advantage of the shortage, he replied in the affirmative and said people should inform the company so the matter could be reported to law-enforcement agencies.
"There is no diesel shortage and enough supplies are being provided to the filling stations," said Alsobai.
He nevertheless added that if a petrol station was found guilty of any irregularity, Woqod could only revoke its supply contract with it but not cancel its license.
The daily requirement of diesel in the country is 32,000 barrels and the company is providing the supplies.
He also ruled out the possibility of some companies acquiring diesel from Woqod's contractors in bulk and illegally exporting it to some neighboring countries where it is costlier.
"Yes, diesel is costlier in the UAE and Bahrain, for instance, but its export from here is not possible," he said.
Woqod supplies diesel through some designated contractors to companies and industrial units which require it for use. For this purpose, Woqod has fixed permanent diesel tanks with adequate safety measures at their premises. More than 300 such tanks have so far been installed.
Replying to a question about whether the gas-to-liquids (GTL) diesel can be used in vehicles instead of the conventional diesel, he said GTL diesel is much costlier and an automobile's engine is to be tailor-made to accept it or the engine will be ruined.
According to Alsobai, the capacity of the new pipeline to channel petroleum products from the refinery in Mesaieed to Woqod's depot, which is expected to be ready by next year, will be 2.5 times more than that of the existing one.
He said that the vehicle population in the country had been exploding unexpectedly and stood at over 500,000 by the end of last year. "We expect the figure to grow by about 20 per cent annually."
Present at the briefing was Nasser Ibrahim Fakhroo, Woqod's operations director. He said that frequent traffic jams were also responsible for trucks not getting enough quantities of diesel on a daily basis.
"If a truck earlier came to a filling station five times a day, the frequency may have now come down to two due to the traffic congestion," said Fakhroo.
© The Peninsula 2007
