KARACHI: The Oil & Fuel 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.
Displaying its robust displeasure over the printing of stories studies associated to points between the regulator and the trade, it mentioned, “This motion is extremely unprofessional and undermines the cooperative efforts that Ogra persistently extends to resolve points confronted by the refineries,” the letter mentioned.
Ogra added that it has all the time been dedicated to supporting the refineries, guaranteeing the sleek decision of their challenges by all doable means. “Nevertheless, the publication of those correspondences, together with unwarranted feedback, not solely disrupts this course of however might undermine” the establishment’s repute, the strongly-worded letter of Ogra mentioned, including {that a} skilled perspective sooner or later is anticipated from the trade.
It might be famous that The Information reported on June 14, 2024 concerning the situation pertaining to the import of excessive velocity diesel (HSD) when the refineries, in a letter to Ogra, protested towards 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 making an allowance for 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 repeatedly monitor and impact adjustments within the plans when necessitated by materials adjustments within the assumptions used for planning within the PRM,” it mentioned.
Per Ogra, there have been quite a few situations the place deliberate imports of OMCs are diminished/lower with mutual consent from the refineries, and different instances, imports had been allowed to OMCs past the initially determined volumes within the PRM. This flexibility is crucial 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 few months to produce merchandise to GO as a result of disagreements over monetary/business phrases.
Consequently, Ogra, in its earlier communication vide letter dated June 4, 2024, additionally suggested the refineries to supply aggressive business 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 situation with the identical.
Subsequently, it was “stunning to study from the print media concerning the refineries’ stance” over the next approval by the authority, However, 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.