LAHORE: The Oil Marketing Association of Pakistan (OMAP) on Tuesday regretted that the actions of government related to oil marketing companies were making their business environment restrictive and discouraging.
In a letter written to the chairman of Oil and Gas Regulatory Authority, the copy of which is available with the Business Recorder, the OMAP said that the OGRA is adopting delaying tactics regarding renewal of licenses of oil marketing companies and requested to decide the matter of OMC license renewals and extensions before the closing of this calendar year.
As per the letter, the meeting of the authority will be held on Wednesday (today) to finalize the long-pending issue of renewal and extension of OMC licenses. While addressing the OGRA Chairman, it said, “Sir, we are now running out of breath on the promises and commitments made and communicated through your letter dated 20-10-2021 and series of futile meetings held afterward.”
“Earlier, a meeting of chairmen OMAP and OGRA was held on December 23 in which issues faced by the association were discussed in detail, one-point agenda pertaining to ‘renewal of OMC licenses’ was discussed in detail. Serious and severe reservations and concerns of OMAP were conveyed to your good-self without any doubt.”
The banks have stopped financing oil marketing companies. They were not extending any support in the opening of LCs as a result supply of petroleum products both locally and internationally was affected, it added.
The letter said that the oil marketing companies were facing a liquidity crunch as a result of anti-business policies regarding oil marketing companies. “The whole oil industry is brought to knees due to above-mentioned factors as our business standing has badly suffered before the international oil industry players. We are facing liquidity constraints coupled with legal implications only due to OGRA’s inability for taking a decision on grant of licenses/extensions for more than a year,” the letter added.
“We finally request OGRA to decide the matter of OMC license renewals and extensions before the close of this calendar year lest we resort to all possible legal, administrative, and institutional recourse for resolution of the matter as OMAP members are now pressing hard to adopt an alternate course of action with,” the OMC chairman requested the OGRA.
Copyright Business Recorder, 2021