In a potential shift from the current fortnightly price announcement practice, the Oil and Gas Regulatory Authority (Ogra) is contemplating weekly revisions in petroleum product prices.
The proposed change comes as a departure from the earlier monthly announcements, which were subsequently shifted to a fortnightly system starting September 1, 2020.
Ogra, the industry regulator, has initiated discussions with stakeholders in the oil industry regarding the viability of transitioning to weekly price reviews. The regulatory body has sent letters encouraging stakeholders to provide comprehensive reviews and comments, outlining the benefits and drawbacks of such a move.
According to Ogra, think tanks are actively considering the proposal for weekly revisions, and the regulator seeks input from stakeholders to make an informed decision.
This potential change aims to address challenges faced by the oil industry, particularly in mitigating inventory losses, a concern that led to the earlier shift from monthly to fortnightly reviews.
Recent downward revisions in petroleum product prices have resulted in inventory losses for the oil industry, prompting officials to advocate for the policy change. The move to weekly reviews is anticipated to prevent potential losses by providing more flexibility in adjusting prices in response to market dynamics.
One of the underlying issues that the new system aims to address is the occurrence of artificial shortages allegedly caused by dealers during price reviews. The shift to weekly revisions is expected to curtail such practices and enhance market stability.
Upon concluding discussions with stakeholders, Ogra will submit recommendations to the Petroleum Division for review. Subsequently, these recommendations will be presented in the form of a summary to the Economic Coordination Committee (ECC) for formal approval.
It’s worth noting that an earlier attempt to deregulate petroleum products, allowing the oil industry to set prices without state control, faced obstacles and failed to materialize.
The proposed system, scheduled for enforcement on November 1, 2022, was hindered by internal disputes within the energy task force, ultimately leading to a lack of progress during the previous administration.
this is very nice blog
The global oil market is characterized by constant fluctuations influenced by geopolitical events, economic indicators, and supply-demand dynamics. OGRA’s decision to conduct weekly revisions reflects a commitment to staying abreast of these changes.
this is good and useful
According to Ogra, think tanks are actively considering the proposal for weekly revisions, and the regulator seeks input from stakeholders to make an informed decision.
According to Ogra, think tanks are actively considering the proposal for weekly revisions, and the regulator seeks input from stakeholders to make an informed decision.
hello guys . very good to find this contents . It’s worth noting that an earlier attempt to deregulate petroleum products, allowing the oil industry to set prices without state control, faced obstacles and failed to materialize.