KARACHI: The Oil & Gasoline Regulatory Authority (Ogra) disapproved the reporting of its correspondences with the refining sector within the print media in a letter of protest despatched to the nation’s 5 refineries on Thursday.
Exhibiting its robust displeasure over the printing of reports studies associated to points between the regulator and the business, it stated, “This motion is extremely unprofessional and undermines the cooperative efforts that Ogra persistently extends to resolve points confronted by the refineries,” the letter stated.
Ogra added that it has at all times been dedicated to supporting the refineries, guaranteeing the graceful decision of their challenges by means of all attainable means. “Nevertheless, the publication of those correspondences, together with unwarranted feedback, not solely disrupts this course of however could undermine” the establishment’s repute, the strongly-worded letter of Ogra stated, including {that a} skilled perspective sooner or later is anticipated from the business.
It might be famous that The Information reported on June 14, 2024 concerning the difficulty pertaining to the import of excessive velocity diesel (HSD) when the refineries, in a letter to Ogra, protested in opposition to the approval of HSD imports regardless of the supply of native HSD shares.
The regulator acknowledged that gross sales and imports/manufacturing estimates/plans are finalized within the PRM after bearing in mind many variables with the view to construct resilience into the nationwide oil provide chain. “Nevertheless, historical past has taught us that the plans can go awry and there’s a must constantly monitor and impact adjustments within the plans when necessitated by materials adjustments within the assumptions used for planning within the PRM,” it stated.
Per Ogra, there have been quite a few cases the place deliberate imports of OMCs are diminished/lower with mutual consent from the refineries, and different occasions, imports had been allowed to OMCs past the initially determined volumes within the PRM. This flexibility is important to take care of a resilient nationwide oil provide chain and to stop any potential dry-outs.
OGRA identified that GO requested for approval to import 15,000 metric tonnes of diesel in June 2024, and this request was made because the refineries had been hesitant over the previous couple of months to provide merchandise to GO as a consequence of disagreements over monetary/industrial phrases.
Consequently, Ogra, in its earlier communication vide letter dated June 4, 2024, additionally suggested the refineries to supply aggressive industrial phrases to their prospects — OMCs — to facilitate the finalization of sale-purchase agreements. It’s pertinent to say that in the identical month, PSO’s imports of 165,000 metric tonnes had been additionally finalized in the identical PRM assembly and the refineries had no difficulty with the identical.
Due to this fact, it was “shocking to be taught from the print media concerning the refineries’ stance” over the following approval by the authority, Nonetheless, within the July PRM, GO was directed to finalize its agreements with the native refineries as had been different OMCs for guaranteeing native upliftment.Ogra requested the refining sector to enter into agreements with all OMCs, together with rising OMCs, by providing aggressive phrases.
