The Role of OGRA
The Oil and Gas Regulatory Authority (Ogra) has been allegedly manipulating the exchange rate adjustment to keep petrol prices low in the country.
This manipulation has led Pakistan State Oil (PSO) and other oil companies to face serious cash flow issues. According to The Expres Tribune, PSO brought an adjustment of Rs. 30 per liter for petrol and Rs. 6 per liter for diesel, but Ogra rejected it.
This led PSO to revide the raet at Rs. 15 per liter for petrol and Rs. 3 per liter for diesel. This was done to lessen the impact of oil price hikes on the consumers. Before this, the government also changed the formula for oil rate adjustment. Instead of taking the previous day’s rate of the dollar, the average rate of the dollar was taken.
This was another attempt to reduce the impact of increased oil prices in the international market. The technique backfired when the average rate of the dollar increased from Rs. 225 to Rs. 228 instead of going down.
Oil Supply Slashed
This manipulation has made it difficult for oil companies to determine the exact price of petrol for the consumers. In a reaction to the price hike of petrol and diesel on Monday, several petrol pumps throughout Karachi remained closed on Tuesday without any call for a strike.
Earlier, oil marketing companies (OMCs) demanded that the government increase their profit margins to Rs8.85 per liter of petrol and diesel from August 1, 2022. OMCs made this demand after the government increased the margin for petroleum dealers. As this demand has not yet been met, several fuel stations did not receive any petrol supply for Tuesday.
This whole situation has created a man-made oil crisis in the country. Consumers are blaming dealers, dealers are blaming OMCs, and OMCs are blaming the government. This vicious cycle has led the common man to suffer, and the public is unable to find fuel even at high prices.
What is your take on this issue? Share your views in the comments section.
I believe that this man-made error is reflecting the hastiness often seen in public behaviour. Public also compares apples and oranges, make illogical decisions and give birth to people in power and now they are reaping the price of what what they sowed.