Ogra told to cancel licences of OMCs if they fail to develop storage facility

National Assembly Standing Committee on Petroleum and Natural Resources has directed Oil and Gas Regulatory Authority (Ogra) to cancel licences of Oil Marketing Companies (OMCs) if they fail to develop storage infrastructure in stipulated time given in the licence agreements.
NA body that met with Sheikh Waqas in the chair expressed serious concern over failure of OMCs to set up storage capacity that was committed in agreements. "No extension should be given in providing licenses if they fail to develop storages," Waqas directed Ogra authorities.
Member NA body Syed Inayat Ali Shah, said that government should not pay Rs 4 billion price differential claims (PDCs) to companies that had failed to fulfil obligations of the licensing agreements. "One group had minted money from the consumers during devastating floods," he said.
Khurrum Jehangir Watto said that government was collecting Rs 40 billion Petroleum Levy (PL) on petrol and diesel. "Government should expand tax net to find out other source head to earn revenue rather than imposing PL on petrol and diesel," he said. The committee took serious notice of oil being smuggled from Iran. Chairman Committee directed to call officials of Federal Board of Revenue (FBR) to brief about measures being taken to control oil smuggling. Ogra chairman was also directed to hire the services of Hydrocarbon Development Institute of Pakistan (HDIP) that has been denied of any inspection rights for CNG stations. Ogra has hired third parties to benefit them at cost of loss of million of rupees revenue to HDIP that has expertise and laboratories. Ogra chairman Tauqeer Sadiq assured to grant some rights to HDIP for inspections.
A report prepared by Federal Investigation Agency (FIA) about corruption in SNGPL was also taken up in the meeting. Director General (DG) Gas Saeedullah Shah failed to respond to any action against officials alleged for malpractices, according to a report. Shah said that I had even no director for assistance and Committee expressed displeasure over it. Managing Director (MD) SNGPL Rasheed Lon accused Ministry of Petroleum for not taking them on board while forming a committee to investigate the issue. He said that committee had not recommended any action against corrupt officials.
He assured the committee to fix responsibility within 30 days after thoroughly examining the case. The committee directed to sack officials if the allegations against them were proved. The committee also directed SNGPL management to sack those officials who had supported some villages to get gas without connections in different parts of the Punjab.