ISLAMABAD: Federal Minister for Energy, Omar Ayub Khan chaired a session with a delegation of Oil Tankers Contractors Association (OTCA) and provincial and federal government departments/agencies to resolve the issues of OTCA at the Ministry of Energy-Petroleum Division on Saturday.
The meeting was attended by the chairman FBR, chairmen of Provincial Revenue Authorities, MD Pakistan State Oil (PSO), and representatives of the Oil and Gas Regulatory Authority (Ogra).
The delegation presented issues/demands in front of concerned departments, which were taken up and discussed by Omar Ayub one-by-one for their resolution.
After extensive deliberations, the OTCA called off their announced strike and both parties reached the conclusions as follow: Joint team of the OTCA and the FBR will meet on Monday, 20th July to sort out the issue of increase in the income tax. Procedural matters will be resolved as soon as possible and legislative requirement will be finalised for submission to Advisor on Finance and respective parliamentary forum.
The Sindh Revenue Board will convene a meeting with other provincial revenue authorities at 9:30am on Monday, 20th July, 2020, to resolve the input adjustment against services sales tax. Meeting of the OTCA team will also be held with SRB at 12pm to take a final decision in the matter. All other provincial revenue authorities (KP, Balochistan and Punjab) agreed in principle to the proposal of the OTCA.
The OTCA team will also meet Member (Gas) and Member (Finance) of the OGRA on Monday 20th July, 2020, to resolve and finalise the issue of freight revision. The OGRA may also consider the deadline for compliant tank lorries extension up to the time when multi-product movement commences through White Oil Pipeline.
Primary movement may not be allowed after the operationalisation of the WOP, however, after the operationalisation of the WOP, secondary movement will continue for 1.5 year/18 months for up-gradation of secondary vehicles.
Two studies will be conducted in two weeks time by Petroleum Institute of Pakistan (PIP) in consultation with the OCAC and the OTCA/OGRA for determining these steps. Number of compliant vehicles required for transportation throughout the country after operationalisation of the WOP in normal times and in case of any emergent shutdown of WOP.
Phenomena of dumping of petroleum products due to commercial loading and usage of vehicles on self-collection basis. The PSO will maintain single queue for transport vehicles as per the decision of the Sindh High Court (SHC).
The OGRA will issue necessary instructions to all oil marketing companies for providing facilities of clean drinking water, filtration units, mosque, rest rooms, coolers, washrooms, etc at oil depots. There is no plan for deregulation of freight pool under consideration by the Petroleum Division at the moment.
Copyright Business Recorder, 2020