The Oil and Gas Regulatory Authority's (Ogra) powers for oil pricing have been curtailed to a mere spectator as it can only note the change in international market for any specific fortnight and forward it to the Ministry of Petroleum, without any recommendation to pass on the impact to the consumers.
Sources said that Ogra exercise of its authority was hurting the consumers as well as the oil marketing companies whose billions of rupees were unpaid due to government policy of capping oil prices.
Even the power of any change in oil price does not lie with the Ministry. Ogra would send the calculations to the Ministry, which would take it to Prime Minister Secretariat, through Finance Ministry, without any addition or deletion. The new working indicates that the Petroleum Ministry's role in oil pricing is not more than a post office, which receives and sends letters to different destinations.
Till 2004, the same was the case with the oil companies (OMCs) Advisory Committee (OCAC). It could work out the difference in world market and forward it to the Ministry.
Interestingly, OCAC met harsh criticism from certain quarters and finally it was shown exist door, and authority of reviewing the oil pricing was handed over to Ogra. This change was nothing but an old wine in new bottle and had nothing to offer the consumers for relief. The real power lies with the Prime Minister Secretariat. And, it uses full authority. The new working indicates that Ogra was not doing the job for which it was established. Its authorities appeared satisfied over symbolic powers to regulate the oil sector.
Ogra was established in 2000 under an ordinance with the purpose to regulate oil sector effectively, and independently. The international donors, such as the World Bank and Asian Development Bank (ADB), which played a key role in establishing Ogra against the will of the government, might have a clear role for it to keep the oil sector stakeholders within given limits and more importantly protect the consumers' interest.
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