Regulator orders OMCs to slash HOBC price
OGRA says fuel is being sold at higher than actual cost
OMCs had placed a request for the import of 1,430 tons to bridge the deficit in October, but the director general oil of the Ministry of Petroleum turned it down, saying import of such a small quantity was not justified. PHOTO: FILE
ISLAMABAD:
The Oil and Gas Regulatory Authority (Ogra) has found that oil marketing companies (OMCs) are taking undue advantage of deregulation of high octane blending component (HOBC) fuel by charging higher prices.
In a letter written to Pakistan State Oil (PSO) managing director, Ogra said though the HOBC price was deregulated, the fuel was being sold at a higher rate compared to the actual cost.
It said the HOBC price should be immediately reduced in line with its actual cost, lest the Competition Commission of Pakistan (CCP) take notice of cartelisation.
Meanwhile, panic buying of petrol and high-speed diesel (HSD) has worsened supply situation in various regions of the country where shortage of petroleum products has been reported.
The Petroleum Division and Ogra have failed to restore a smooth supply of petrol and HSD in the upcountry and lower regions since the reduction in petrol price on May 31.
The All Pakistan Petroleum Retailers Association said OMCs had stopped fuel supply to petrol pumps and filing stations were getting reduced supplies, which were not enough to satisfy consumer demand and were resulting in serious problems.
In a statement, the Petroleum Division said it “is cognisant of the artificial shortage of petroleum products that is being created in the country by some OMCs and petrol dealers”.
The Petroleum Division emphasised that there was sufficient petrol stock in the country and additional production by refineries and planned imports were on schedule to meet monthly needs.
“Useable stocks of 272,500 tons of petrol and 376,000 tons of HSD are available in the country and are enough for 12 to 17 days,” it said.
The division said “it is unfortunate that some OMCs and/or their dealers have resorted to such methods for profit maximisation, however, appropriate actions are being taken jointly by the Petroleum Division, Ogra, CCP and all relevant stakeholders proactively to normalise the situation.”
The Petroleum Division said it was in contact with all the OMCs and most of them did not have any major shortage. Shell and Total Parco were low on stocks but their additional imports would arrive on June 8-10 after which their stocks would be replenished, it said.
The Petroleum Division urged the public and petrol dealers not to engage in panic buying.
Published in The Express Tribune, June 6th, 2020.
The Oil and Gas Regulatory Authority (Ogra) has found that oil marketing companies (OMCs) are taking undue advantage of deregulation of high octane blending component (HOBC) fuel by charging higher prices.
In a letter written to Pakistan State Oil (PSO) managing director, Ogra said though the HOBC price was deregulated, the fuel was being sold at a higher rate compared to the actual cost.
It said the HOBC price should be immediately reduced in line with its actual cost, lest the Competition Commission of Pakistan (CCP) take notice of cartelisation.
Meanwhile, panic buying of petrol and high-speed diesel (HSD) has worsened supply situation in various regions of the country where shortage of petroleum products has been reported.
The Petroleum Division and Ogra have failed to restore a smooth supply of petrol and HSD in the upcountry and lower regions since the reduction in petrol price on May 31.
The All Pakistan Petroleum Retailers Association said OMCs had stopped fuel supply to petrol pumps and filing stations were getting reduced supplies, which were not enough to satisfy consumer demand and were resulting in serious problems.
In a statement, the Petroleum Division said it “is cognisant of the artificial shortage of petroleum products that is being created in the country by some OMCs and petrol dealers”.
The Petroleum Division emphasised that there was sufficient petrol stock in the country and additional production by refineries and planned imports were on schedule to meet monthly needs.
“Useable stocks of 272,500 tons of petrol and 376,000 tons of HSD are available in the country and are enough for 12 to 17 days,” it said.
The division said “it is unfortunate that some OMCs and/or their dealers have resorted to such methods for profit maximisation, however, appropriate actions are being taken jointly by the Petroleum Division, Ogra, CCP and all relevant stakeholders proactively to normalise the situation.”
The Petroleum Division said it was in contact with all the OMCs and most of them did not have any major shortage. Shell and Total Parco were low on stocks but their additional imports would arrive on June 8-10 after which their stocks would be replenished, it said.
The Petroleum Division urged the public and petrol dealers not to engage in panic buying.
Published in The Express Tribune, June 6th, 2020.