OGRA warns marketing companies

Says OMCs risk losing licence if found closed or overcharging.

ISLAMABAD: As dealers in Southern Punjab raise oil prices to Rs250 per litre, the Oil and Gas Regulatory Authority (Ogra) has warned oil marketing companies (OMCs) that they should be ready to face cancellation of marketing licences if their retail outlets were found involved in either shutdown or overcharging.

Sources told The Express Tribune that Ogra held a meeting with representatives of OMCs on Wednesday over reported hikes in oil prices by retail outlets from Rs113.61 per litre of petrol to Rs250.

“We have clearly warned the OMCs that they would face suspension of their licences in the first phase and cancellation if their retail outlets were found involved in overcharging or shutdown in a bid to increase margins,” a senior official of Ogra said.

When contacted, Ogra Chairman Saeed Khan confirmed that the meeting was held and a team had also been sent in different cities of Southern Punjab to check whether retail outlets of OMCs were open. The teams would also take action if they were involved in overcharging.

Another official said that the Punjab government had taken action against petroleum dealers for overcharging. Sources said that Ogra had approached the government of Punjab to take action against overcharging by dealers.

“Following the direction of Punjab chief minister, local administration took action against overcharging and imposed millions of rupees in penalty against several retail outlets which prompted petroleum dealers to shut down petrol stations,” officials said.

Published in The Express Tribune, December 12^th, 2013.

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