OGRA warns OMCs for failing to lift oil quotas

Says companies will face legal consequences over disruptions in national supply chain

ISLAMABAD:

The Oil and Gas Regulatory Authority (Ogra) has warned oil marketing companies (OMCs) of strict action for failing to uplift their allocated quotas of petroleum products from refineries.

In a letter sent to the OMCs, Ogra directed them to uplift the allocated volumes of petroleum products agreed upon during the product review meeting for August 2024.

The companies involved in the violation of uplifting their allocated volumes include Pakistan State Oil Company Ltd, Be Energy Ltd, Puma Energy, Attock Petroleum, Hascol Petroleum Ltd, Horizon Oil Company (Pvt) Ltd, Echo Oil Pvt Ltd, Petro Pakistan Pvt Ltd, and several other leading entities in the petroleum sector. These companies have been officially notified of a pressing issue related to the National Oil Supply Chain (NOSC).

In its directive, Ogra officials highlighted the critical role refineries play in maintaining national petroleum supplies. The smooth functioning of these refineries, closely linked with the oil marketing companies, is essential for meeting national demand. Unfortunately, it has come to Ogra's attention that the upliftment of high-speed diesel (HSD) during the first fortnight of August by several OMCs has been lower than the allocated volumes, as determined in the Petroleum Reserves (PR) meeting held for August 2024.

This delayed and reduced upliftment has significantly strained refinery operations, impacting their production capacity and potentially leading to disruptions in the national supply of petroleum products. Ogra emphasised the importance of timely product upliftment by OMCs, particularly of HSD, to avoid any adverse impact on refinery performance and to prevent disruptions in the supply chain.

The companies have been urged to comply with the directive. Failure to adhere to these instructions could result in stringent legal action against the non-compliant OMCs, as per the applicable laws and regulations.

Ogra has issued a strong reminder to all companies involved in the supply chain, urging them to prioritise timely upliftment and avoid any further delays.

This notice serves as a crucial reminder of the responsibilities that each OMC holds in ensuring the smooth operation of the NOSC and maintaining uninterrupted fuel supplies nationwide.