HPL challenges suspension of KP marketing license
Our Correspondent
M/s Hascol Petroleum Limited (HPL) has filed an application before the Oil and Gas Regulatory Authority (OGRA) to review the decision to suspend the company’s marketing license for Khyber Pakhtunkhwa and the imposition of a penalty of Rs 10 million.
In a decision issued on Wednesday, the regulatory-Oil and Gas Regulatory Authority (OGRA) had to suspend the marketing license for KP and imposed a penalty of Rs 10 million.
‘We would like to inform you that the Oil and Gas Regulatory Authority (OGRA) has communicated its Order dated 20.10.2020 (“Order”) in respect of suspension of marketing license of the Company for Khyber Pakhtunkhwa with immediate effect and imposition of penalty of Rs. 10 million’ Hascol Petroleum Limited (HPL) said in a notice issued to Pakistan Stock Exchange adding that ‘We understand that the Order is based on a misinterpretation of facts and the law.
As such, the Company is challenging the same at the appropriate forum of law and is confident of a favorable outcome, HPL management said and added ‘We believe that the impression the Company has violated any law is false, illegal and hence denied’.
In view of the above, it may not be appropriate to derive negative connotations from the above-mentioned Order as the same shall cause harm to the Company and the public.
You may please inform the TRE Certificate holders of the Exchange HPL, management added.
Ogra in its decision said that Hascol Petroleum Limited (HPL) was found operating illegal/unauthorized storage and selling of petroleum products (petrol & diesel) at Amangarh Depot. Based on the investigation and the documents, provided by HPL, it was proved that HPL remained involved in severe violations of Law/Rules and failed to provide reasonable justification for the operation of this depot despite OGRA’s clear directives for the stoppage of operation of the Amangarh depot till the fulfillment of all legal requirements & OGRA’s permission in January 2020.
The company was served with Show Cause Notice on October 13, 2020, on the illegal operation of Amangarh Depot & to explain the facts by appearance. After hearing and due to consideration, the Authority suspended Hascol Petroleum Limited’s marketing activities in Khyber Pakhtunkhwa and directed them to immediately stop all marketing activities/ sales at outlets ins Khyber Pakhtunkhwa till further orders.
Further, in order to avoid any inconvenience to the general public, all Oil Marketing Companies (OMCs) are directed to augment supplies to their retail outlets in Khyber Pakhtunkhwa.
https://newztodays.com/hoarding-and-black-marketing-fir-registered-against-hascol-and-go-pakistan-limited/
In addition to the above, the Authority also imposed a penalty of Rs. 10 Million on breach of rules by HPL.
A fire accident was reportedly occurred on August 75, 2020 at the gantry of the HPL’s oil depot at Amangarh. On the said accident, HPL was advised to vide OGRA’s letter dated August 17, 2020, followed by a reminder dated August 24, 2020, to provide NOCs issued by MOD, District Government, CIE, a copy of FIR of the accident, and the clarification as to why HPL is operating this depot without OGRA’s permission.
Since HPL neither provided any document nor submitted any clarification within the given time; therefore, HPL was served with SCN dated September 2, 2020, for non-provision of requisite information and for the non-compliance with the Authority’s directive regarding stoppage of operation of Amangarh depot without permission. Moreover, DG, Department of Explosive was also requested to take strict action as per applicable rules/law for depot operation without its license.
Thereafter, HPL vide its letter dated September 2, 2020, has submitted certain documents i.e. DCO’S NOC, initial Storage License along with ‘Form L’ issued by Explosive Department, Layout Plan approved by Explosive Department, and OGRA Third Party inspection record, etc.
