The Oil and Gas Regulatory Authority (Ogra) has directed Pakistan State Oil (PSO) to stop high handedness of Compressed Natural Gas (CNG) outlets established in the premises of PSO-operated petrol pumps. According to an official communiqué of Ogra to Managing Director (MD) PSO dated 15th April 2016, the regulator has directed PSO to refrain from its action against CNG outlets on PSO's franchises, saying that it could result in serious safety hazards.
APCNGA had appealed to Ogra that its members who are operating on PSO Re-fuelling station franchises were allegedly being subjected to extortion of undue and unlawful amounts through coercive methods. PSO is said to have been unduly demanding from its franchisee re-fuelling stations over and above the OGRA prescribed per kg Oil Marketing Company (OMC) fee, to which PSO and its parent authority ie Ministry of Petroleum and Natural Resources had earlier consented.
PSO later refused to own up to its own decision and directive from MP&NR. Having gone into arbitration with its franchises, PSO even refused to accept the verdict of the arbitrator dated 17 Sep 2010 and later dated 10 August 2015, while the arbitration award is already fixed before Islamabad High Court for making it the "Rule of Law" and is sub judice. When contracted , Hayat , Chairman APCNGA stated that PSO had crossed all limits and the PSO CNG franchisee have decided to seek legal remedy by filing suits for recovery of "unlawful" and "illegal" deduction by PSO.
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