OGRA Warns OMCs of Action for Low Oil Upliftment

Staff Report: Oil and Gas Regulatory Authority (Ogra) has warned oil marketing companies (OMCs) to face strict action over failure to uplift allocated quota of petroleum products from refineries.

In a letter sent to OMCs has directed to uplift allocated volume of petroleum products agreed in product review meeting for August 2024.Ogra Increases Prices of LNG for August 2024

The companies involved in violation of uplifting allocated volume included Pakistan State Oil Company Ltd.,, Be Energy Ltd.,, Puma Energy, Attock Petroleum, Hascol Petroleum Ltd., Horizon Oil Company (Pvt) Ltd., Echo Oil Pvt. Ltd., Petro Pakistan Pvt. Ltd., and few other leading entities in the petroleum sector. These companies have been officially notified of a pressing issue related to the National Oil Supply Chain (NOSC).

In a directive sent to the companies, officials of Ogra highlighted the critical role refineries play in maintaining national petroleum supplies.

Ogra said thatvThe smooth functioning of these refineries, closely linked with the oil marketing companies (OMCs), is essential for meeting national demand.

Unfortunately, Ogra said thatbit has come to attention that the upliftment of high-speed diesel (HSD) during the first fortnight of August by several OMCs has been lower than the allocated volumes as per the Petroleum Reserves (PR) meeting held for August 2024.

The delayed and reduced upliftment has resulted in a significant strain on refinery operations, impacting their production capacity and potentially leading to disruptions in the national supply of petroleum products.

The Ogra emphasized the importance of timely product upliftment by OMCs, particularly of HSD, to avoid any adverse impact on refinery performance and to prevent disruptions in the supply chain.

The companies have been urged to ensure compliance with the directive. Failure to adhere to these instructions could result in stringent legal action against the non-compliant OMCs as per the applicable laws and regulations.

The Ogra has issued a strong reminder to all companies involved in the supply chain, urging them to prioritize timely upliftment and avoid any further delays.

This notice serves as a crucial reminder of the responsibilities that each OMC holds in ensuring the smooth operation of the NOSC and maintaining uninterrupted fuel supplies nationwide.