OMCs’ licences: Suspension in Azad Kashmir, northern areas only, says OGRA

The six companies have 1,100 petrol pumps across the country.

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) has suspended licences of Oil Marketing Companies only for Azad Jammu and Kashmir and Northern Areas, an official clarified on Wendesday.

The authority on Tuesday had suspended licences of six oil marketing companies for not maintaining required stocks at their oil depots in various parts of the country.

The official said these companies will not supply stocks to petrol pumps in Azad Jammu and Kashmir and Northern Areas of the country following the suspension.

The official hoped the suspension of the licences will not create a fuel shortage. There are 13 oil marketing companies operating across the country.

The six companies include Byco Petroleum Pakistan, Admore Gas, Hascol Petroleum, Askari Oil Services, Overseas Traders Private and Bakri Trading Company Pakistan.

The companies, having 1,100 petrol pumps across the country, were violating the licence by not retaining fuel stocks for at least 20 days. OGRA had issued show cause notices to these companies and asked them to strictly implement the licenses’ terms and condition but they paid no heed and fuel shortage continued to prevail.

Byco continues operations

Byco Petroleum has not received any official suspension notice so far and continues business activities, according to a notice sent to the Karachi Stock Exchange on Wedensday.

“We have 78 days of petrol and 49 days of high speed diesel in our storage,” said the oil marketing company’s CEO Amir Abbassciy in the notice.

The company plans on setting up new storage facilities in MehmoodKot, Machike and Shikarpur.

Published in The Express Tribune, June 30^th, 2011.