ECC to transfer DG Oil’s functions to Ogra

Ibn-e-Ameer

Following the oil crisis, the Petroleum Division has proposed to transfer functions of import, demand, and supply of petroleum products to Oil and Gas Regulatory Authority (Ogra).

At present, Ogra monitors and regulates the storages issues of oil marketing companies (OMCs). However, director General Oil (DG Oil) regulates imports, demand, and supply issues of petroleum products.

The petroleum division has informed Economic Coordination Committee (ECC) that Inquiry Commission on Oil crisis had recommended dissolving the authority.

It said that the government had been facing issues of overlapping between policymakers and regulators.

It further said that two authorities in a single sector of oil resulted in failure of effective monitoring and enforcement.

The country had faced two oil shortages crises in 2015 and 2020.

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Two authorities of Ogra and DG Oil had been involved in the blame game for fixing the responsibility of occurrences. Prime Minister had formed an Inquiry Commission to probe the petrol crisis in June 2020 that recommended dissolving the authority.

The petroleum division said that some functions of import, demand and supply of petroleum products were under the exclusive authority of the DG Oil Petroleum Division.

In order for effective control and monitoring of petroleum products supply and demand, petroleum division suggests that one authority should retain all functions.

DG Oil chairs the product review meeting every month to review demand and supply situations. The representatives of oil marketing companies (OMCs) also attend the meeting.

Due to retaining those functions, Federal Investigation Agency (FIA) had arrested director General Oil and another official of the petroleum division.

DG Oil had banned the import of petroleum products during the crisis of oil. He had suddenly lifted a ban on the import of petroleum products.

During that crisis, the oil and gas regulator authority (Ogra) had also imposed multimillion rupees fine following failure to maintain oil stocks.

All private companies had curtailed supply to their retail outlets. Pakistan State Oil (PSO) had to enhance supply that resulting in multibillion rupees loss.