LAHORE: The Oil Marketing Association of Pakistan (OMAP) on Wednesday requested the Chairman Oil and Gas Regulatory Authority (Ogra) Masroor Ahmad for a meeting at earliest convenience to discuss the concerns.
In this regard the OMAP chairman wrote a letter to Chairman Ogra Masroor Ahmad highlighting issues and chart a path forward that fosters a collaborative environment for the betterment of the petroleum industry in Pakistan.
The letter states, “We have consistently raised these concerns through multiple letters and engagements before your good-self as well as your team, but unfortunately, the response from your esteemed office has always been found disheartening and contrary to the statutory role of the Regulator, empowered to regulate no less than US $35 billion Oil Industry, feeling helpless and stranded at the hands of your non-cooperative and stiff necked team.”
Chairman OMAP Tariq Wazir Ali further said in the letter that it is with great regret that I must highlight the apparent negligence and indifference shown towards the issues plaguing our industry. The OMAP has repeatedly communicated the urgent need for resolution on matters such as FX losses adjustment, price mechanism formula, OMC margin revision, smuggling of Iranian diesel, and OMC licenses renewal issues. These issues fall directly under the purview of Ogra, being the regulatory authority fully empowered and responsible for the oversight and management of the petroleum sector.
He added, “While we understand the complexities and challenges faced by Regulatory bodies, it is disconcerting to note that the Ogra has consistently deflected responsibility and unshouldered it upon other departments to address these crucial issues. As the regulatory authority entrusted with the mandate of fostering competition and increasing private investment in the Petroleum industry, ensuring well-being and growth of the petroleum industry, it is your solemn duty to proactively engage and resolve all above-mentioned matters rather than passing the buck.”
“Let’s take the example of recent letter of DG Oil, Ministry of Energy (Petroleum Division) No PL-3(457)2023 dated 14th June, 2023 wherein it categorically narrates that vide SRO 254(1) 2006 dated 15th March, 2006 the powers under clause (e) and clause (g) of Rule-3 of Petroleum Products (Petroleum levy) Rules 1967 in respect of margins (OMCs & Dealers) shall be exercisable by the Ogra with effect from 1st April 2006. This letter clearly shows your willful refrain from exercising your powers and put the ball in other department’s court, hence trying to escape from your legal responsibilities for the reason best known to you,” the chairman OMAP explained in letter.
He also said that the recent decision by Shell Petroleum to exit Pakistan serves as a stark reminder of the repercussions of inaction and apathy towards industry concerns. This not only poses a significant setback to the petroleum industry but also raises concerns about foreign direct investment (FDI) in our country. If this casual attitude of the regulator towards industry matters continues, it will undoubtedly lead to a complete disaster for the Pakistan petroleum industry, causing irreparable damage and serving as the final nail in the coffin.
Copyright Business Recorder, 2023
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