KARACHI: KARACHI: The Oil Marketing Association of Pakistan (OMAP) on Monday rejected the accusations by the Oil and Gas Regulatory Authority (OGRA) that some emerging oil marketing companies (OMCs) had failed to meet the minimum standards for sales, stocks and imports of petroleum products.
OMAP Chairman Tariq Wazir Ali expressed disappointment and concern in a letter written to OGRA Chairman Masroor Khan. The News reported on Sunday about the OGRA letter to 27 OMCs warning them over poor performance and supply risks.
“OMAP vehemently denies the allegations made by OGRA and categorically rejects any insinuations of wrongdoing or impropriety by our member oil marketing companies (OMCs),” the letter said, while accusing the regulator of being biased.
“It is regrettable that OGRA has once again displayed a clear bias and partiality by seemingly excluding the names of few favourite OMCs from its scrutiny,” the OMAP chairman’s letter said.
The letter provided to The News stated that OMCs in Pakistan confront pressing issues like considerable delay in the resolution of financial adjustments, including adjustment of foreign exchange losses, negative inland freight equalisation margin (IFEM), late settlement of inter-company freight settlement (ICFS), high-speed diesel premium differential and sales tax adjustments.
“This prolonged delay has given rise to a substantial and unsustainable financial burden on the OMCs. On a monthly basis, these companies are compelled to inject vast sums of rupees into the energy supply infrastructure to ensure its seamless and uninterrupted operation,” the OMAP said.
It regretted the procrastination in addressing pending adjustments, which it said was taking a severe toll on the financial health of emerging OMCs, significantly affecting their balance sheets.
“This untenable situation not only hampers the industry’s ability to operate efficiently but also endangers the stability of the entire energy supply chain in the country,” the letter said. OMAP chairman urged for urgent attention and prompt resolution of these issues to safeguard the economic well-being of its member OMCs, and to ensure Pakistan’s energy security.
OMAP said that OMCs have diligently followed the law of the land and complied with all required criteria, working tirelessly to ensure the availability of petroleum products to the citizens of Pakistan.
“We find it deeply concerning that despite our repeated requests, OGRA has failed to provide a level playing field to all OMCs. It is our strong belief that regulatory bodies should act impartially and transparently, ensuring fairness and equality in the industry,” it said. The association assured that all its members were committed to ensuring uninterrupted supply of petroleum products to the nation.
“Any insinuation that we would jeopardise the country’s energy security is not only unfounded, but also insulting to the dedication and hard work of our member companies,” it said. OMAP assured that it was committed to work with OGRA and other relevant authorities to address any legitimate concerns to maintain the highest industry standards. “However, we insist that allegations and insinuations must be based on concrete evidence and fair assessments rather than biased judgments,” it pointed out.