23/01/07 (Business Recorder)  KARACHI  - Palm oil supply to refineries for the whole country has halted for the last four days due to the unannounced strike by transporters, sources told Business Recorder on Monday.

They said that edible oil producers of the country were in a fix as the two big transport groups--contractors and transporters--which supply imported palm oil from Karachi port and Port Qasim to across the country--had locked horns with each other.

Daily, around 200 oil trucks transport the oil for upcountry but since last Friday not a single trucker has transported oil for upcountry refineries, they said. "Transporters have also completely closed down edible oil terminals at Keamari and Port Qasim. As a result, palm oil supply even to refineries in Korangi, Site and North Karachi has halted due to non-availability of transportation facility," they said.

Sources said that operation of edible oil refineries in the country has come to a standstill due to non-availability of palm oil. "Actually, we lift our imported commodity on daily basis from the port after paying duties, and we can not operate our plants without crude palm oil," said a refinery owner.

Industry sources said that around 3,000 to 4,000 tons imported palm oil is lifted every day by transporters from both ports and the ongoing edible oil crisis could further aggravate, with this new issue.

They said that edible oil transporters and contractors have completely suspended their operations following a tussle, which cropped up between them on certain domestic issues, including commission.

Oil tanker owners are demanding more transportation charges and commission for transportation of the palm oil, while the contractors do not want to pay more commission to them, they said. Some oil tanker owners intended to make direct contracts with oil refineries, which was disapproved by contractors, they said.

If the crisis edible oil transportation deepened, it could hit the market and consumers very badly, if not resolved in the next couple of days, they added.

Industry sources demanded of the officials concerned to take action and intervene immediately to resolve the issues between the two parties as it could put a further negative impact on cooking oil prices.