Shell Pakistan Agrees to Pay Rs. 257 Million Fine for Bahawalpur Incident

In the aftermath of the disastrous oil tanker explosion near Bahawalpur, Shell Pakistan was was fined Rs. 257 million by the government to compensate victims of the accident.

The blast on 25th June was one of the worst accidents to have ever occurred in Pakistan. A tanker carrying fuel oil ran off the road, with the oil leaking out as a result. Soon afterwards, many people in the vicinity  rushed to gather the fuel. The place was set ablaze accidentally, causing a massive explosion. More than 200 people died with dozens more injured.

The Oil and Gas Regulatory Authority (OGRA) held Shell Pakistan responsible for the accident.

It should be mentioned that Shell Pakistan is a subsidiary of Royal Dutch Shell, which is headquartered in the Netherlands.

Does Not Accept Liability

The company agreed to pay the fine. However they did not accept any liability for the incident. Shell Pakistan said that it would comply with OGRA’s directive adding that,

However, we do so while reserving the right to contest the fine.

OGRA ordered Shell Pakistan to pay Rs. 10 million fine in addition to Rs. 1 million to the families of every single person who died. About Rs. 500,000 per person was also to be paid to the injured.

Shell paid the fine as it “clearly recognize(s) that this was a tragedy that has deeply affected the community”.

More often than not, oil companies don’t agree to pay fines like these. They usually file a case and keep it in litigation for years instead.

Given this scenario, Shell Pakistan’s decision to accept the fine on the other hand sets an interesting precedent in the country. Perhaps multinational companies are hoping to be more conscious of their social responsibilities in light of such incidents.

Via Reuters

A techie, gamer, and Senior Editor at ProPakistani.

  • Shell ! a huge oil producing giant in the world.
    their agent is playing with the life of poor.OK it is their mistake but if the loader truck is hired by Shell and it is technically not licensed to take a load of fuel on the road then the fault lies with the the representative of Shell in Pakistan. 2.57 million US$ is crushing shame to SHELL and ITS representative in Pakistan at the death of 209 people.I will get the real story of the truck contracted BY SHELL REPRESENTATIVE IN PAKISTAN.This is peanut shame on the representative and the GIANT SHELL.

    • Fuel is transported thru trucks all over the world. Besides the govt does not want to build pipeline infrastructure or use rail transport in order to not disturb the business of tanker/ truck mafia. Its not the fault of companies like Shell.

  • #offTopic
    There’s news floating around about the newly revised Ptcl packages for certain areas of certain cities. Can you do a story on that Hamiz?

  • All companies involved in transportation of such dangerous products on the roads of Pakistan thru an 80% illeterate population MUST realise their responsibility to the Community.
    Chlorine and Ammonia – Lethal Gases are freely transported in rickety Bedford trucks with no safety equipment or warning signs, we have become a nation waiting for disasters to happen with no agencies available for rescuse work (except the armed forces).

  • Us Waqt Police Kaha thi, Motor Way Police Kaha thi, Traffic Police Kaha thi :
    Unho Ne Q Nahi Hataya tha Logo Ko : Pehly Unko to JOB Se Hatao At Least Ungli to Uthao Un Par : Bus Private Company Par Case Karte Jao

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