OGRA Penalizes 6 OMCs for Petroleum Shortages

OGRA Penalizes 6 OMCs for Petroleum Shortages 1

The Oil and Gas Regulatory Authority (OGRA) has held 6 major oil marketing companies (OMCs) responsible for petroleum shortage across the country and imposed on them a cumulative fine of Rs 40 million. The authority also issued fresh show-cause notices to Askar Petroleum, Byco Petroleum and BE Energy for similar violations of rules and license conditions, resulting in petroleum shortage.

Related: Government Blame Mafias for Creating another Crisis

OGRA imposed a fine of Rs 10m each on Shell Pakistan and Total Parco. Interestingly, Petroleum Secretary Asad Hayauddin is the chairman and director of Total Parco board. The regulator also imposed Rs 5m fine each on Puma Energy, Gas and Oil Pakistan and Hascol Petroleum. An official said the responsibility also lied on the petroleum division, particularly additional secretary policy, director general oil and the relevant wing of OGRA for not being vigilant over the emerging shortages.

OGRA Penalizes 6 OMCs for Petroleum Shortages 2

The OMCs are required to deposit the fine within 30 days and can seek review of the OGRA orders after payment of 50% fine also within 30 days. The companies have also been asked to improve the supplies to their outlets immediately otherwise further fine could be imposed on continued contravention of the rules.

OGRA Penalizes 6 OMCs for Petroleum Shortages 3

Meanwhile, according to Shell Pakistan the petrol shortage in the country was due to unprecedented increase in demand during May which even the energy ministry could not foresee. Speaking to media through a video conference on Thursday, Habib Haider, manager external communications of Shell Pakistan, said the 20-day storage was currently limited to Karachi and could be extended to Punjab and Khyber Pakhtunkhwa by the end of this year after the pipeline was completed.

Related: Petrol Pricing in Pakistan Likely to be Deregulated

Haider also said that petrol demand more than doubled last month compared to the sales in March, and nobody including the refineries, ministry, OGRA or the oil companies could understand it. He downplayed the show-cause notice against oil companies alleging that hoarding by the companies and petrol stations caused the current petrol shortage. Haider said:

“When the prices are going down there is no sense to hold the stocks, actually people would dump off the costly stocks as fast as they could to cut losses. Energy ministry had restricted all imports for April and directed all the oil companies to lift oil from the local refineries, but the refineries too were not prepared for the massive increase in demand in May.”

Full Story: Dawn

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About UsmanAnsari

A 3d animation professional with over 19 years of industry experience, an avid car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com

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پڑھ لے
پڑھ لے
3 months ago

How can a sitting secretary to Govt. can also be chairman of board of directors of a private entity

Shahid Nawaz Khan
Shahid Nawaz Khan
Reply to  پڑھ لے
3 months ago

happens only in Pakistan. a country run by business elites zameendars jageerdaars.. where aqama holders were top ministers.. where personal steel mills can gain success but national steel mills suffers. where personal airlines make profits but national airlines goes into loss. this is Pakistan 🙁

Khurram
Khurram
Reply to  Shahid Nawaz Khan
3 months ago

Power and greed for more money is embedded in every being, I doubt that a poor person would do better than these jageerdars if he were given a chance. I still have not forgotten the so-called poor thugs that Altaf Hussain used to send, they even introduced China cutting in real estate world. The buffoons even had the nerve to kill the sacrificial animals and snatch away money donated for masjid.

TiredOfThisShit
TiredOfThisShit
3 months ago

“Petroleum Secretary Asad Hayauddin is the chairman and director of Total Parco board.”

Conflict of interest. Must be fired immediately.

TiredOfThisShit
TiredOfThisShit
3 months ago

6 stay orders courtesy Pakistan’s corrupt Judicial system coming right up!

Khurram
Khurram
3 months ago

Demand got doubled and ministry did not foresee, even I could see people driving freely on the roads perhaps that is why P.S.O. placed orders for fuel. It can literally be seen that ethics among Pakistanis is lost and is getting worse. This kind of harried governance is similar to effects of public behaviour we observe while being on the road and acting toward fellow travellers.
Keep it up people, keep on looting slippers from masjids, selling fruit on tainted scales and speaking and acting without thinking.