LAHORE: Oil Marketing Association of Pakistan (OMAP) on Monday appealed to the Minister for Energy, Muhammad Ali for immediate intervention to solve OMC issues.
In this regard Chairman OMAP Tariq Wazir Ali wrote a letter to Minister for Energy, Muhammad Ali in which he said that disparities in premiums, lack of clarity in ex-refinery prices determination, restricted credit lines and additional sales tax have created an alarming situation which is causing substantial financial losses pushing the OMCs toward a perilous tipping point.
He said that the existing policy for determining ex-refinery prices lacks clarity, leading to several operational challenges for OMCs.
In a statement issued here, OMAP said that the existing policy for determining ex-refinery prices lacks clarity, leading to several operational challenges for OMCs. We propose the implementation of a pool system to compensate OMCs for verifiable FX losses, said the letter.
Additionally, a comprehensive audit is recommended to assess the distribution of losses from 2020 onwards, ensuring a fair and transparent process. It is suggested that the price mechanism of FX adjustments be revised to account for significant fluctuations in exchange rates.
OGRA’s formal communication to OMCs detailing pending amounts will facilitate accurate representation in balance sheets, strengthening their financial position.
The gravity of these issues demands immediate attention, as the delay in resolution is pushing OMCs to the brink of collapse.
The OMAP sought urgent attention and intervention in addressing a series of prolonged and unresolved issues that are severely impacting the viability of Oil Marketing Companies (OMCs) in the country.
OMAP requested a meeting with minister to discuss these issues in detail and seek his prompt intervention for their resolution. Timely action is imperative to prevent further damage to the industry and safeguard the livelihoods of millions associated with it.
Copyright Business Recorder, 2023
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