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Saturday June 15, 2024

OGRA warns 27 OMCs over poor performance, flags supply risks

By Tanveer Malik
September 24, 2023

KARACHI: The Oil and Gas Regulatory Authority (OGRA) has found that 27 oil marketing companies (OMCs) have failed to meet the required benchmark for sales, stocks and imports of petroleum products, raising concerns over possible fuel shortages in the country.

In a letter sent to the OMCs, the OGRA said that the below-market performance of the OMCs was “a matter of grave concern to government as well as OGRA”.

OGRA sought the financial and business models of these OMCs and details of the stocks at their depots, volume supplied and sold from the feeding depot to the concerned pumps in the area, and district-wise list of the new petrol pumps for which the letter is issued by any OMC to the Deputy Commissioner Office.

OGRA carried out the exercise to determine the stocks and imports of the petroleum products after the Ministry of Energy asked it to look into the matter of dry out at petrol pumps of the OMCs.

DG oil in a letter had informed OGRA chairman that the Minister of Energy has taken serious notice of the reports of dry retail outlets of OMCs at few locations, and had directed that OGRA should mobilise its enforcement team to ensure that all the OMCs kept their retails outlets wet and well supplied with petroleum products.

The DG oil’s letter also highlighted that, according to OGRA/OCAC daily reports, the country currently possesses sufficient stocks of petrol (MS) and high-speed diesel (HSD).

Therefore, any attempt at hoarding must be strongly discouraged and curbed.

The letter further stressed that regulatory action may be taken against any OMC(s) maintaining stocks lower than the mandatory requirement so as to stave off any potential countrywide shortage of petroleum products.

The OMCs identified having lower than the required sales, stocks and imports of petroleum products include Gas & Oil Pakistan Limited , Hascol Petroleum Limited, My Vital Pvt Limited, Be Energy Limited, Cnergyico, Max Fuels Limited, Allied Petroleum Limited, Kepler Petroleum, Zoom Petroleum , Laguardia Petroleum, Vital Petroleum, Quality-1 Petroleum, Horizon Oil Company, OTO Pakistan Limited, Al-Noor Petroleum, Fast Oil Limited, Oilco Petroleum, The Fuelers Limited, My Petroleum Limited, Jinn Petroleum Limited, Oil Industries Pakistan, Exceed Petroleum, Euro Oil Petroleum, Flow Petroleum Limited, Taj Gasoline Limited, Hi Tech Lubricants Limited and Z&M Oils Limited.

OGRA said that OMCs have the responsibility to keep their retail network wet at all times, including adequate stock levels at the depots and locations.