ISLAMABAD. The Oil and Gas Regulatory Authority (OGRA) has imposed Rs5 million penalty each on three oil marketing companies (OMCs) after they were found involved in creating artificial shortage of petrol in the country by hoarding the commodity, in first 10 days of the current month.

The hoarding and artificial shortage was witnessed soon after the government's decision to pass on the impact of international oil prices to the masses by bringing down ex-refinery price amidst protests by the OMCs.

"OGRA imposed penalty of Rs5 million each on BYCO, ASKAR and BE Energy on show cause notices issued during oil shortage crises earlier this month," OGRA Spokesman Imran Ghaznavi tweeted.

The preliminary investigation report of the Petroleum Division, and the physical inspection of the OGRA in collaboration with the HDIP, indicated that the three OMCs were involved in hoarding of petrol in first 10 days (June 1st to June 10th).

The data analysis shows the share of BE dropped to 0.2 percent in first 10 days of June, which was 2.3 percent on May 20th. BE Energy kept a stock of 8,697m tons at the time of inspection.

In same period, BYCO shares dropped to 2.2 percent from 3.6 percent.

BYCO had a stock of 413m tons at BE terminal Port Qasim on June 10th.

ASCAR had a stock of 7,387m tons on June 9th at HTl (Hascol terminal).

The regulator earlier in June also imposed Rs40 million fine on leading oil marketing companies including foreign firm, Shell for hoarding petroleum products that led to petrol crisis across the country.

The OGRA had imposed fine on Shell Pakistan and Total Parco, PUMA, Go, Hascol and Attock Petroleum Limited.

Copyright Business Recorder, 2020