ISLAMABAD: Although the Oil and Gas Regulatory Authority (OGRA) has failed to make the licensed oil marketing companies (OMCs) comply with the clause stipulating the construction of oil storages over past few years, yet it has issued licenses to 21 more OMCs in just six months to attract further investment.
Performance/ progress of OGRA relating to oil sector during six months (i.e. July – December 2016) disclosed that it (OGRA) has opened floodgates to the oil marketing companies (OMCs) by granting 21 licenses in just six months compared to only 20 over the past 70 years.
The new 21 companies are expected to invest about Rs10.5 billion over the next few years to set up storages and filling stations in various parts of the country.
The OGRA has also given marketing permission to five others. In addition, four licenses were granted for the development of new oil storages and terminals at different locations while two lube oil blending plants and six lubricant marketing companies were granted licenses in the last six months.
According to criteria for issuance of petroleum products marketing license, a new company should develop storages at locations and capacities corresponding to their business strategy, estimated business volumes and associated economics. Moreover, investment plan of the company should concentrate on infrastructure development of depots, installations etc. And, the new company must create minimum storage of 20 days of their proposed sales as infrastructure prior to beginning sales in the country.
A specific plan to this effect over a period of 3 years shall also be provided.
According to OGRA, it has granted license to establish Oil Marketing Company to 21 companies i.e. M/s Best Petroleum (Pvt.) Limited, M/s Oil Industries Pakistan (Pvt.) Limited, M/s Accel Petroleum (Pvt.) Limited, M/s Euro Oil (Pvt.) Limited, M/s Oleum Petroleum (Pvt.) Limited, M/s Al-Noor Petroleum (Pvt.) Limited, M/s Damam Petroleum (Pvt.) Limited, M/s Max Fuels (Pvt.) Limited, M/s Fast Oil (Pvt.) Limited, M/s Hi-Tech Lubricants (Pvt.) Limited, M/s Jinn Petroleum (Pvt.) Limited, M/s Vital Petroleum (Pvt.) Limited, M/s International Petrochemicals (Pvt.) Limited, M/s Allied Petroleum (Pvt.) Limited, M/s Only One Energy (Pvt.) Limited, M/s Pak Gasoline Services (Pvt.) Limited, M/s Shams Petroleum (Pvt.) Limited, M/s Berkeley Oil & Gas Development (Pvt.) Limited, M/s Taj Gasoline (Pvt.) Limited, M/s My Petroleum (Pvt.) Limited and M/s Terminal One (Pvt.) Limited.
Ogra failed to restrict 2 OMC’s from establishment of petrol pumps i.e Exceed Petroleum and Quality 1 Petroleum. These companies are owned by Saeed Mehdi, a retired bureacrate and former Special Secretary to Nawaz Shareef. Both these companies are yet to be permitted by OGRA to establish petrol pumps, but these companies have constructed hundreds of petrol stations in KPK. its strange to note that from where these two companies are getting product