OGRA suspends 5 more OMCs licenses
Aftab Ahmed
Small Oil Marketing Companies (OMCs) are under the radar of the regulator. However, multinational companies like Shell and Total have exceptions.
The multinational companies were also involved in the oil shortage in June this year and faced a fine from the regulator.
However, the OGRA has suspended another five Oil Marketing Companies (OMCs) licenses for violating the rules.
These companies include Quality One, Horizon, Oilco, Fueller, and Zoom,” an official told Newztodays.com.
Nine more OMCs are in the pipeline to face suspension. They had committed to building required storages at the time of seeking a licence. However, they failed to build storages.
These companies failed to execute a plan of building storages submitted to Ogra, the same official added.
Why Ogra takes action
The OGRA is taking action against those OMCs having less than one percent of the total POL market shares, said an official. He said that it really surprised him.
The OGRA is showing its teeth to those licensees involved in shortage in June this year.
During a mess resulting from an oil shortage, Prime Minister Imran Khan had taken action and directed to hold inquiries. But these inquiries are still pending with anti-corruption watchdogs.
OGRA had already suspended the Hascol marketing license in Khyber Pakhtunkhwa last week in addition to imposing a Rs 10 million fine. The regulator said that company involved in operating illegal/unauthorized storage and sale of POL products at Amangarh Depot of KP.
According to Oil Industry sources, Quality One is one of the minor OMCs—in the market. It just has zero percent of the share. The Company has sold 312 tons of Motor Spirit (Petrol) in its countrywide operations.
Horizon—another OMCs facing the regulator’s wrath—has just 0.13 % of the total share. It sold 9814 tons of MS. Similarly, the OilCo share is 0.02 %, with a total MS sale of 1854 tons.
Fuller’s market share is 0.16 %, with total MS sales of 12014 tonnes. However, Zoom’s share in the OMCs business is 0.43 %, with a total MS sale of 32,424 tons.
Ogra spokesperson said that the licenses of these companies had been expired. Their licenses are under the process of renewal, he said. OGRA has not suspended or canceled any of the above licenses. Their license has expired and is under process/consideration of the Authority for processing their request for an extension.
