POL products' shortage in 2020: OMAP rejects allegations of OMCs' involvement

LAHORE: Oil Marketing Association of Pakistan (OMAP) on Saturday rejected the allegations of involvement of Oil Marketing Companies (OMCs) in the so-called shortage of petroleum products in 2020.

Chairman OMAP Tariq Wazir Ali in a statement said that since June 2020, FIA was conducting raids on the offices of OMC's and cases were registered against CEO's of OMC's. He alleged that FIA officials involved in conducting inquiries against OMC's either have a conflict of interest or don't have any technical knowledge.

The OMAP also demanded that Prime Minister Imran Khan, Chief Justice of Pakistan, and Chief of Army Staff should intervene in the matter and stop the continuous harassment of OMCs by investigative agencies.

He demanded that immediate renewal of OMC licenses who are waiting to set up storage and retail outlets in the country, end to the witch hunt against OMCs, immediate redressed margins of OMCs to ensure that investors both local and international find it attractive to continue as well as expand their businesses, bringing the tax structure for OMCs in line with other corporate entities in Pakistan and stop the aggressive regime of Turnover Tax at 0.75%.

Oil companies say that exchange loss incurred by the OMCs particularly during 2018 till 2020 was mainly due to the high devaluation of the Pakistani rupee.

Copyright Business Recorder, 2021