GO escalates Ogra chief issue to PM

KARACHI: Gas and Oil Pakistan Limited (GO), in which Saudi oil giant Aramco holds a 40 per cent stake, has sought the prime minister’s intervention to evaluate the performance of the chairperson of the Oil and Gas Regulatory Authority (Ogra), citing concerns over ineffective leadership and the regulator’s handling of critical issues in the oil industry.

In a letter addressed to the prime minister, the company expressed serious reservations about the performance of Chairperson of Ogra Masroor Khan. Despite his background in the energy sector, GO alleged that his tenure has been marked by ineffective leadership, leading to increased instability in the industry.

GO called on the prime minister to consider changes in the leadership of the regulator or to initiate potential reforms aimed at revitalising the sector. “While numerous meetings and discussions have been held on pressing industry issues, they have yielded little to no tangible outcomes,” the letter stated. “The oil and gas sector -- an essential pillar of Pakistan’s economy -- requires proactive and decisive leadership to address its complex challenges.”

The letter warned that the current trajectory poses serious risks to the sector and could have far-reaching implications for the national economy. “The present leadership of Ogra has failed to deliver on its commitments, contributing to mounting uncertainty within the industry,” it added. GO urged the prime minister to take “immediate and appropriate” action to remedy the situation.

The company also highlighted recent developments that brought it into the spotlight, including a controversial approval to import high-speed diesel (HSD).

Despite objections from the refining sector -- which argued that domestic production is sufficient to meet local demand -- GO was granted permission to import HSD. Meanwhile, Pakistan State Oil (PSO) continues to import HSD under its long-term agreement with Kuwait Petroleum Corporation. Industry insiders argue that GO’s import approval was unnecessary and has exacerbated operational challenges for local refineries due to non-upliftment and increased imports.

In his comments to The News, the Ogra spokesperson said that under the leadership of Chairperson Masroor Khan, “Ogra is functioning efficiently and in strict accordance with its mandate, rules and regulations. The authority remains committed to transparency, regulatory integrity and serving the public interest.” He added that the authority “is cognisant of the challenges faced by the industry and is always actively engaging all stakeholders to resolve issues in a constructive and timely manner.”

According to sector sources, HSD importation has become a significant issue, with domestic refining operations suffering as a result. GO’s letter emphasised that strong and effective regulatory oversight is critical to ensuring stability in the sector, attracting investment, and promoting sustainable growth.

The company urged the prime minister to thoroughly evaluate the performance of the Ogra chairperson and consider reforms or leadership changes where necessary. “We hope the prime minister will take decisive action to safeguard the future of this vital sector and the many livelihoods it supports,” the letter concluded.