On the instructions of Ministry of Energy, the Oil and Gas Regulatory Authority (Ogra) is expected to cancel provisional licence of 36 Oil Marketing Companies (OMCs).
The decision has been taken after reviewing the activities of these OMCs over the past year. The 36 OMCs in question agreed to build storages at the time of acquisition of licenses but failed to do so due to which they are being served with final notice for closure. On the other hand OMC which gave commitments to build infrastructure but showed very little progress are being given a one-year deadline to complete their infrastructures.
The Commission which was formed after the petrol crisis in 2020 conducted an inquiry and recommended that on controversial holding of PRMs non-observance of import quotas by OMCs, inaction on deficient stocks of OMCs, intrusive involvement of OCAC and non-lifting of local refined products by OMCs from refineries.
Furthermore the inquiry had found that minimum 20 days stock was not being maintained by OMCs. OMCs were also found involved in underutilizing the import quota, importing petrol in excess of storage capacity, importing petrol despite no retail outlets and disregard for safety protocols.
