The Oil and Gas Regulatory Authority (OGRA) has taken a strict action against Oil Marketing Companies (OMCs) over the recent oil crisis. The authority have imposed a penalty of Rs40 million on six OMCs.
The reports stated that the regulatory body has fined Total Parco and Shell with Rs 10 million each, while imposed a penalty of Rs5 million each on Attock, Go, Hascol and Puma Energy. “The companies are bound to pay the fine in next 30 days,” the authority said, adding that companies can file a review appeal after paying half of the fine.
In a letter, OGRA further said that more actions could be taken against OMCS if they continue to violate the oil supply process. “The companies should improve the supply to their retailers immediately otherwise more fine may be imposed on further contravention of regulations,” the authority further said.
Furthermore, OGRA issued show-cause notice to three new OMCs, including Askar, Byco and BE Energy, for license violations. “The companies must submit an explanation within 24 hours,” OGRA asserted.
Earlier on June 3, the regulatory body issued show-cause notices to six companies seeking an explanation in the next 24 hours or through a personal appearance. The current fines were imposed after authority found OMCs’ responses unsatisfactory.
Under Pakistan Oil Rules 2016, OMCs cannot discontinue the oil supply in any part of the country, without prior notice to OGRA.
Due to the recent shortage in Pakistan, consumers faced difficulties in finding petrol products across the country. The crisis followed by news of deregulation of oil prices in Pakistan. The new policy means that oil companies will be allowed to set different rates of petroleum in different areas. It was also reported that the government will deregulate the domestic freight equalization margin (IFEM) mechanism. Through IFEM mechanism, the government has kept nationwide prices of petroleum products at a uniform level
