BY MOHAMMAD SHOEB
DOHA: High quality and heavy price subsidy are two important reasons for diesel smuggling, said H E Abdullah bin Hamad Al Attiyah, Chairman of Woqod.
“Fuel prices, especially diesel prices, in Qatar are one of the lowest in the world,” he said on the sidelines of a ceremony to inaugurate the Woqod Tower in West Bay.
Al Attiyah, also President of Qatar Administrative Control and Transparency Authority, said: “Smuggling is a worldwide phenomenon. It can be minimised with effective surveillance, and Woqod is working with the Ministry of Interior to address the problem.”
Asked if the discriminatory pricing policy for local and foreign companies is the main reason for black marketing of diesel, he said price discrimination cannot be the main reason, because it was found that most diesel bought illegally is exported (smuggled) to other countries.”
He argued that there was no discriminatory pricing in Qatar and said state subsidy on diesel cannot be extended to big foreign companies.
“I see no discriminatory price of diesel in Qatar because all people, including local companies, are getting it at the same price. This is to protect interests of people and local companies. But from big foreign companies, we charge international price as diesel is highly subsidised here.”
He said Qatar Petroleum (QP) buys diesel at international prices, including from its own refineries, and resell it at heavily subsidised prices for the benefit of citizens and residents. “It is not possible to buy diesel at high international prices and sell it at cheaper rates to big international companies. I see no economics in that.”
Referring to recent reports of diesel smuggling, he said: “The ministry, in cooperation with Woqod, has captured many smugglers, and I believe the problem will be eliminated in the near future.
Asked about poor services at other gas stations, he said: “They are private businesses; I have nothing to say about private individual businesses. But as far as Woqod is concerned, for us as a corporate entity, safety, prestige and quality of service are our main goals.”
On the issue of metal gas cylinders (cooking) supposed to be phased out from the market, he said: “The company is working on the plan, and they will be phased out over three to four years.”
The Peninsula
