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Pumps dry up as Riyadh diesel shortage continues
Published in The Saudi Gazette on 24 - 06 - 2012


Saudi Gazette
RIYADH — The new traffic system enforced by the Traffic Department in Riyadh, which allows trucks into the city only between 11.00 P.M. and 6 A.M., has created a diesel shortage in the city, local newspapers reported Saturday.
Owners of gas stations in Riyadh attribute the crisis to the new system that restricts movement of trucks, including fuel tankers. They say although the system was created to reduce congestion on city roads, it has had the opposite effect and increased traffic jams and bottlenecks in many places.

Abdullah Mahmoud, owner of a gas station chain in Riyadh, told Al-Hayat newspaper that the crisis had surfaced two weeks ago when the Traffic Department enforced the new system.
He said the new system had created a real crisis as gas stations were facing a drastic shortage of diesel and could not meet demand from customers.

He said before the application of the new system two tankers supplied diesel to each of his four gas stations but under the new system, fuel trucks cannot enter the city during the day when demand is at its peak and replenish stocks.
“Because of this tight schedule only one truck supplies each of his stations daily resulting in the supply crisis,” Mahmoud said.
He said the crisis was stifling Riyadh. “Large lines of trucks in front of gas stations has become common sight in the city these days,” Mahmoud added while warning that if the crisis was not resolved soon, a diesel black market would emerge.
Muhammad Khan, a gas station worker in Riyadh, also said the new traffic system had disrupted supplies. “We receive only one diesel truck a day now instead of the two we previously received. Even two trucks were not enough to meet the demand.”
Khan said sales had been badly affected at his station and revenues significantly dropped. He added that the situation had created resentment among truck drivers who waste a lot of their time moving from one station to another to fill their tanks.
A source at one of the fuel companies who declined to give his name, said negotiations were underway with the traffic officials in charge to find a solution to the crisis.
?The crisis prompted Saudi ARAMCO to issue a statement denying a production crisis. The company said it continued to supply all regions of the country with their regular diesel quotas and denied being responsible for the current crisis in Riyadh.


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