Shell Pakistan to pay Rs 257m fine

Bahawalpur tanker fire

Observer Report

Islamabad

A Pakistani subsidiary of Royal Dutch Shell on Tuesday agreed to pay a fine of about 257 million rupees ($2.4 million) in compensation for the tanker explosion on the outskirts of Bahawalpur that killed more than 200 people last month.
The fiery blast on June 25 was one of the worst accidents in the country’s history. A tanker carrying fuel rolled over in Punjab and villagers rushed to collect leaking fuel.
Something then set off a fireball. The regulator, the Oil and Gas Regulatory Authority, held Shell Pakistan responsible for the accident in which 217 people died and 61 were injured.
The company said the tanker was owned by a contractor it hired to transport its fuel. Shell Pakistan Ltd said it would pay the fine to “comply with the regulator’s directive”.In a statement, Shell Pakistan added: “However, we do so while reserving the right to contest the fine.”
The energy regulator ordered Shell Pakistan to pay a fine of 10 million rupees. In addition, it ordered the company to pay one million rupees in compensation to the families of each of those killed and half a million for each person injured.

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