ISLAMABAD: The Oil Marketing Association of Pakistan (OMAP) on Monday criticised the Oil and Gas Regulatory Authority (OGRA) OGRA chairman for extending all out support to Oil Companies’ Advisory Council (OCAC) – forum of the big oil marketing companies.
In a strongly worded letter to OGRA Chairman Masroor Khan, OMAP Chairman Tariq Wazir Ali pinpointed the deplorable attitude of the regulator’s chief towards the emerging OMCs in all vital issues, and his all the time support to OCAC. The letter was copied to Federal State Minister Musadik Malik and Secretary Petroleum Division.
Wazir Ali also highlighted the partisan attitude of OMAP, when it came to the letter OGRA wrote to the Singh government. Despite the fact that OGRA chairman raised a genuine issue of the oil marketing sector with the Sindh government, he sent a copy of the letter to OCAC, a non-legal and non-representative concern, while completely ignoring OMAP.
“Emerging oil marketing companies had, time and again, drawn OGRA chairman’s attention verbally as well as in writing, that OMAP, Oil Marketing Association of Pakistan, is the only legally established and recognised representative body duly registered with the Directorate General of Trade Organization, Ministry of Commerce as per applicable law,” the letter read. However, all such concerns have fallen on deaf ears.
OMAP is the representative body of the petroleum industry in Pakistan. OGRA assured OMAP in the last meeting that it would reduce the role of OCAC and accord equal importance to OMAP. However, the recent incident contradicts that commitment and raises serious questions about the equitable treatment of both organisations by the OGRA chairman, who, being the regulator, is mandated to ensure a level-playing field through his impartiality, non-biasedness thus to avoid conflict of interest.
“The OGRA chairman and his team’s repeated efforts to accord recognition to OCAC are not only malafide rather may be tantamount to criminal intentions for personal gains,” the letter alleged.
“More importantly, OCAC is grabbing millions and millions of rupees due to your continued support, and any prudent mind is thus constrained to conclude that you, hailing from an OMC, are involved in discriminating against emerging OMCs being members of OMAP,” the letter said.
It is essential for OGRA to recognise and acknowledge OMAP’s role as a representative body that represents the interests of its members and actively believes in engaging in constructive dialogue with regulatory authorities. If such practice of favouring a non-legal entity OCAC continues, OMAP would be compelled to explore alternative avenues to bring this issue to the policymakers’ attention.
In recent meetings of OMAP with OGRA, it was conclusively agreed that matters relating to lay-can, ICIP shall be handled/controlled/managed by OGRA instead of OCAC. Such demand was raised by OMAP in view of the rising concerns of transparency and fairness in lay-can allocations and related operations. But OGRA instead is extending all support and projection to OCAC.
“Non-transparent decisions of OCAC in allowing lay-cans to OMCs having extensive control in OCAC, are raising eyebrows,” the letter pointed out. Such biased and non-transparent decisions in oil import operations with OGRA’s support, could attract a watchdog’s attention, which would be disastrous for the trouble-ridden oil marketing sector.
The letter said that such partisan attitude was denting the profitability, operations, and sustainability, o emerging OMCs. OMAP, and its members are now constrained to believe that OGRA chief’s past and present deep connections with the OCAC / oil Industry are aimed at disparaging the image of emerging OMCs by levelling false propaganda against such OMCs before the policy decision makers.
OMAP and its member companies have repeatedly expressed their genuine concerns and sought fair treatment from OGRA regarding lay-can allocations and related operations. However, the recent support and projection extended by OGRA to OCAC, despite the non-transparent and biased decision-making process, has raised serious apprehensions. This alliance has left OMAP with no choice but to consider forming its own strategy to address the issues at hand.
In the end, OMAP urged OGRA chairman to reconsider his approach and impartially address the concerns of both big and emerging OMCs to ensure a fair and sustainable oil marketing sector, vital for the country’s oil supply chain.
