ISLAMABAD: An Oil and Gas Regulatory Authority (Ogra) official Friday apprised a parliamentary panel that the regulator has taken over the demand and supply function from the Petroleum Division and a more resilient NOSC has been ensured with 20 days stocks in the country on a consistent basis, for the first time in Pakistan.
The Senate Standing Committee on Cabinet met on Friday under the chairmanship of Rana Mahmood ul Hassan.
Ogra Chairman Masroor Khan briefed on the Ogra’s last three years’ performance.
HSD import permission to M/s GO: 5 refineries lodge protest with Ogra
In the briefing, the committee was informed that an investment of $4-5 billion has been carried out in upgradation of refineries. In order to upgrade the local refineries with a view to increasing local production, Ogra has executed agreement with Pakistan Refinery Limited (PRL). Existing plant of PRL located at Karachi shall be upgraded with the cost of $1.8 billion.
Draft agreements with Attock Refinery Limited (ARL) and National Refinery Limited (NRL) have been finalised to upgrade their plants at the cost of $1.3 billion. Agreements with Parco and Cynergico of around $1.4 billion are being finalised.
Members’ committee was further briefed that oil pricing is a deregulated activity which is being carried out by OCAC and now by OMCs, however, the Ogra’s role in this process is merely computing of taxes on prescribed rates. Further, Ogra issues pricing of kerosene oil and all the other products like motor gasoline (petrol), high-speed diesel, fuel oil, LDO and jet fuel are being dealt by the industry.
Further, Ogra allows Inland Freight Equalization Margin (IFEM) which is an integral component of the final price of regulated fuel products, through which prices of HSD, MS, Kerosene and LDO are equalised at 23 approved IFEM depots/locations spread across the country, despite disparities in transportation costs.
In attendance were Senator Saifullah Sarwar Khan Nyazee, Senator Mohammad Abdul Qadir, Senator Jam Saifullah Khan, the secretary of the Cabinet Division, the chairman of the National Electric Power Regulatory Authority (Nepra), senior officials from the Ogra, the Ministry of Interior, and other affiliated departments.
The meeting commenced with a briefing on the functional structure of the Nepra, its mandate, the formation of its authority, and its regulatory values. The officials, while reporting on the principles of regulation, emphasised that their focus is to ensure regulation is consistent, transparent, and open to the general public. Data on Nepra’s performance over the last three years was also presented to the committee members.
The officials presented information on tariff determinations, adjustments, and transmission service charge components. Senator Mohammad Abdul Qadir recommended that Nepra provide a special briefing on the power sector, as the lack of accountability could lead to unrest in the country.
Senator Saifullah Khan Nyazee suggested that an audit report be provided to the committee members and a forensic audit of the IPPs was unanimously recommended.
The Chairman of the Committee, Senator Rana Mehmood ul Hassan, advised the officials to come up with solutions, as the entire nation bears the brunt of inefficiency in tariff monitoring. He also suggested that the officials ensure accountability in the determination of tariffs and report on the authority responsible for overseeing this matter.
The committee members expressed serious concern over the loss of precious life caused by the cylinder blast. They recommended increasing the penalties and fines for unauthorised cylinder manufacturing.
Furthermore, the committee members advised the Interior Ministry to produce a report within one week on the legislative aspects related to the incident.
Copyright Business Recorder, 2024
Comments
Comments are closed.