LAHORE: Pakistan Petroleum Dealers Association (PPDA) on Monday asked Oil and Gas Regulatory Authority (Ogra) to play the role of regulator for whole of the industry and not for the big oil marketing companies only.
In a letter written to Secretary Ministry of Energy (Petroleum Division), Chairman PPDA Abdul Sami Khan said: “It is pertinent to mention that Ogra is regulator for all the industry not merely for the big oil marketing companies or few other big OMCs. It is Ogra’s constitutional duty to ensure a level playing field and watch and ensure the benefits of industry and stake holders at all levels.”
He also demanded that Ministry of Energy should stop favoring big Oil Marketing Companies (OMCs) and take strict action for increasing the franchise fee despite the deteriorating financial situation of the country.
As per the letter it is very unfortunate to observe that in such time of turmoil and financial crunch, one of the big oil marketing companies increased the franchise fee by Rs 1.25 per liter. So, OMC will be getting Rs 7.25 per liter, this increase is quite illogical and will severely impact the workability of our retail outlets. As you are well aware of the fact that currently due to the high cost of doing business and sharp increase in prices due to massive rupee devaluation, it has really become hard to make both ends meet. The increasing cost of electricity is further adding to the miseries of retail out lets.
The letter further says in all such circumstances the said increase will seriously shackle the business continuity, as for the survival and viability of retail outlets we are already struggling for the termination of the franchise fee, rather Shell Pakistan has increased it, which is quite unacceptable.
Copyright Business Recorder, 2023
Comments