Payments to OMCs: Ogra completes 80pc audit of IFEM claims of PSO, 4 refineries

ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has completed 80 percent audit of Inland Freight Equalization Margin (IFEM) claims of Pakistan State Oil (PSO) and four refineries to clear the payments to Oil Marketing Companies (OMCs).

The federal government assigned the responsibility of determination/computation of the IFEM to the Ogra since September 1, 2008, and to manage the IFEM pool for payment of the IFEM to the OMCs.

The IFEM is an integral component of the final price of MS, LDO, SKO, and HSD, through which prices are maintained at an equalized level across the country despite disparities in transportation costs. Thus, price is equalised at 22 depts/locations spread all over the country.

The IFEM is basically the movement of petroleum product across the country at 22 depots located at most economical and efficient rates.

Copyright Business Recorder, 2023