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OGRA to hold exchangerate meeting

By Our Correspondent
March 18, 2023

KARACHI: Oil and Gas Regulatory Authority (OGRA) has convened a meeting on March 21 to brief and align all the stakeholders with the prescribed format of “exchange rate mechanism” as devised and approved by the federal government.

Ministry of Energy (Petroleum Division), Directorate General (Oil), CEOs and CFOs of oil marketing companies including OCAC and OMAP have been invited to attend the scheduled meeting.

OGRA has already responded to some concerns regarding exchange rate mechanism. The clarification stated that the calculations of exchange rate adjustments were done on the basis of data provided by PSO, with provision of payment documents that are scrutinised by OGRA under federal government policy guidelines, wherein, the exchange rate adjustment impact is covered up to the maximum period of 60 days from the bill of landing of PSO and is limited to LC discharge date of PSO.

As per the federal governments’ pricing formula, the benchmark for the adjustment of exchange rate is PSO’s import price and any revision in price formula is the mandate of the federal government. OGRA implements the federal government policy guidelines under OGRA Ordinance. However, in order to bridge the communication gap among stakeholders, OGRA has arranged a meeting on March 21, 2023 in Islamabad to address the concerns of stakeholders.