Emerging OMCs call out oil regulator on bias

KARACHI: Emerging oil marketing companies (OMCs) are working as per law and it is their constitutional right to do business in an equal opportunity environment provided by the Oil and Gas Regulatory Authority (OGRA).

OGRA is the regulatory authority for all OMCs, and just not only for the four big OMCs.

Therefore, it should provide a level playing field and stop discriminating against emerging OMCs, a representative of the emerging OMCs said in response to an article published in The News about their role in the petrol shortage.

It should be noted that all emerging OMCs, as per their size, played a vital role in dealing with the current crisis by increasing the supply to their fuel pumps.

They also constitute “vigilance committees” who monitored and ensured the supply of products from depot to pump hence maintaining the supply chain effectively.

Emerging OMCs also issued a helpline number for the public to inform about any shortage or lower supply of oil at any of their pump. This move was deeply appreciated by the general public and played a very positive role in smooth supply and availability of product at all fuel pumps.

OGRA and OCAC nexus with the help of four big OMCs has been aggressively working against emerging OMCs, the representative said, alleging that they were united in portraying a bad image of the emerging OMCs in the ministry, OGRA and every available forum to keep them out of business. They “intend to make a cartel of four OMCs with the help of OGRA,” the representative accused.

OGRA should devise policies keeping in view all the industry stakeholders. However, it seems that OGRA was playing a partial role and formulated policies for the benefit of the four big OMCs

“The supply chain management controls of big companies are weak, due to which the product dispatched from depots does not reach its original destination, instead it goes to hoarders, who cause a shortage at pumps,” the representative of emerging OMCs said.

To ensure equal opportunities and level playing field for all OMCs, the selection of OGRA chairman should not be from the four big OMCs, if so, the incumbent will always formulise policies to favour big companies and will work against the emerging OMCs, they said.