Ogra decides in principle to extend OMCs licenses
Ibn-e-Ameer
Oil and Gas Regulatory Authority (Ogra) has decided in principle to extend provisional licenses of new oil marketing companies (OMCs) till December 3, 2023.
In a letter sent to director general (DG) oil, the regulator had requested to hold a meeting on the issue of extending licenses of OMCs.
Sources said that the Prime Minister’s office had also taken note of extending licenses relating to pending and extension cases.
DG Oil Petroleum division had informed Ogra that they were trying to find out an amicable solution after court cases.
Small Oil Marketing Companies (OMCs) are under the radar of the regulator. However, multinational companies like Shell and Total have exceptions.
Ogra said that the Authority has examined the cases of extension.
It further said that the Authority has now, in principle, decided that it should grant an extension of provisional licenses of OMCs till December 31, 2023, for completion of the work program.
Accordingly, Ogra is going to process cases of renewal of said provisional licenses after the completion of formalities.
The regulator had suspended licenses of provisional licenses of oil marketing companies after the June 2020 oil crisis.
The suspension of licenses was the result of different investigations that revealed malpractices in the process.
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Federal Investigation Agency (FIA) also conducted the investigation.
Prime Minister Imran Khan had also removed then advisor to the prime minister on Petroleum Nadeem Babar and secretary petroleum.
The Ogra had also fined multimillion rupees fine on big fishes. However, it had suspended licenses of small oil marketing companies.
It had also withheld the process of granting new licenses following the investigation of the oil crisis.
The OGRA had also suspended licenses for violating the rules. These companies included Quality One, Horizon, Oilco, Fueller, and Zoom.
The OGRA had taken action against those companies whose market share in oil supply was less than one percent of the total POL market.
Ogra spokesperson had told Newztodays earlier that the licenses of Quality One, Horizon, Oilco, Fueller, and Zoom had been expired.
Their licenses were 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.
