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Shell fined $2.4m for fatal Pakistan tanker blast

07 July 2017

Pakistan's oil and gas regulator has ordered a subsidiary of Royal Dutch Shell to pay about 257 million rupees (about $2.4 million) in damages and compensation for a tanker explosion that killed more than 200 people last month. The Oil and Gas Regulatory Authority held Shell Pakistan Ltd responsible for the blast in Punjab province on June 25 after the tanker rolled over, and villagers rushed to collect leaking fuel.

Stock image
Stock image

The road accident was caused by "non-professional driving/vehicle being lesser than required specs", the authority said in a report on July 7.
At least 217 people were killed in the explosion and 61 were injured, according to Amir Mehmood, spokesman for Victoria Hospital in nearby Bahawalpur city.

The energy regulator ordered Shell Pakistan to pay a penalty of 10 million rupees. In addition, the regulator 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.

The company has the right to appeal against the fine and compensation demand, he said.


On July 11, Shell Pakistan agreed to pay the fine of 257 million rupees in compensation for the tanker truck explosion.

The regulator, the Oil and Gas Regulatory Authority (OGRA), held Shell Pakistan responsible for the accident. The company said the tanker was owned by a contractor it hired to transport its fuel.

Shell Pakistan said it did not accept liability but it did "clearly recognise that this was a tragedy that has deeply affected the community".

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