President Arif Alvi has granted sanction for placement of Rs20 billion in the assignment account for reimbursement of Price Differential Claims (PDC) of Oil Marketing Companies (OMCs) and refineries.
In a letter dated March 18, 2022 to the Accountant General of Pakistan, Petroleum division conveyed the sanction of the President to the placement of Rs20 billion in the assignment account titled Reimbursement of Price Differential Claims (PDC) of Oil Marketing Companies (OMCs) and refineries
“It is requested that the Manager National bank of Pakistan Main Branch Karachi may be advised to arrange payment against the ceiling of Rs2 billion on the receipt of cheques and prescribed schedule of payment duly signed by the authorized signatories of the account,” said a letter of the petroleum division.
According to the procedure for payment of PDC to OMCs/refineries for November 1-4, 2021 and March 1 to June 30, 2022, the finance division will provide permission to open an assignment account to be operated by Pakistan State Oil (PSO) within three days after the approval of PDC payment mechanism by ECC while the division will also allocate and transfer budget in the assignment account as estimates provided by the Oil and Gas Regulatory Authority.
The Oil Marketing Companies (OMCs) and refineries will submit claims of PDC fortnightly based on the procurement (import and local refineries) of the petroleum products category wise supported with relevant documents duly certified by the external auditor of the OMCs and refineries to OGRA. In addition, refineries and OMCs will subsequently share the sales tax documents with OGRA as soon as these are submitted to FBR for the purpose of audit.
Likewise, OGRA will review the claims and forward to PSO and a copy to the finance and petroleum division within three days of receipt of claims.
Moreover, PSO will transfer the amount from the assignment account to the designated commercial bank account of the respective OMCs and refineries and keep an auditable record within one day.
Furthermore, the finance division will advise Auditor General of Pakistan (AGP) to conduct audit of the claims and disbursement at the end of scheme on the basis of the record submitted to OGRA including the sales tax documents within a week of the close of financial year, while any overpayment pointed will be recovered by OGRA.
It is relevant to note that in a bid to absorb the burden of approximately Rs31.73 billion worth PDC following the announcement of a relief package by Prime Minister Imran Khan, the Economic Coordination Committee (ECC) on Tuesday approved allocation of Rs12 billion to the oil companies while ECC held on March 7, 2022 had already approved a sum of Rs20 billion along with a procedure for swift payments to oil companies and refineries on account of price differential claims (PDCs) mainly to avoid the shortage of petroleum products in the country.
The ECC had also approved the mechanism proposed by the PSO for calculation and payment of PDC on the basis of sales of product instead of procurement.
Nice article
Very Informative Article
Good Job by President
Very informative Article. We hope soo , we can see new shapes and new cars in market soon.
In the main cities of Pakistan, like in Islamabad, booking a wedding car is the essential and basic need of the public. Usually, people spend a lot of money and time on the selection of local wedding cars, but unfortunately, they face several problems in deciding the selection of luxury wedding cars
Drive your drеаm car in Islamabad. Сhооsе саrs frоm рrеmium brаnds likе Mercedes, Audi, BMW, Ford, and much more.
In case you’re looking to ride in a luxury car, you can consider hiring a profеssiоnаl сhаuffеur sеrviсе. Get a handsfree experience right from your аirроrt tеrminаl, hоtеl, the villa at your preferred time 24×7.