AIRLINK 60.84 Increased By ▲ 1.14 (1.91%)
BOP 6.32 Increased By ▲ 0.06 (0.96%)
CNERGY 4.32 Increased By ▲ 0.05 (1.17%)
DFML 15.91 Increased By ▲ 0.21 (1.34%)
DGKC 69.12 Decreased By ▼ -0.08 (-0.12%)
FCCL 18.11 Decreased By ▼ -0.24 (-1.31%)
FFBL 26.37 Decreased By ▼ -0.38 (-1.42%)
FFL 9.18 Decreased By ▼ -0.10 (-1.08%)
GGL 10.21 Decreased By ▼ -0.09 (-0.87%)
HBL 117.06 Increased By ▲ 1.16 (1%)
HUBC 114.31 Decreased By ▼ -0.09 (-0.08%)
HUMNL 6.87 Increased By ▲ 0.07 (1.03%)
KEL 4.87 Decreased By ▼ -0.02 (-0.41%)
KOSM 5.36 Increased By ▲ 0.71 (15.27%)
MLCF 38.50 Increased By ▲ 0.11 (0.29%)
OGDC 123.33 Decreased By ▼ -1.97 (-1.57%)
PAEL 21.78 Increased By ▲ 0.22 (1.02%)
PIAA 11.80 Increased By ▲ 0.93 (8.56%)
PIBTL 6.08 Increased By ▲ 0.06 (1%)
PPL 113.07 Decreased By ▼ -1.03 (-0.9%)
PRL 28.22 Increased By ▲ 0.32 (1.15%)
PTC 11.39 Increased By ▲ 0.49 (4.5%)
SEARL 51.91 Increased By ▲ 0.21 (0.41%)
SNGP 67.35 Decreased By ▼ -0.91 (-1.33%)
SSGC 11.29 Decreased By ▼ -0.13 (-1.14%)
TELE 7.78 Decreased By ▼ -0.02 (-0.26%)
TPLP 11.54 Decreased By ▼ -0.06 (-0.52%)
TRG 71.72 Decreased By ▼ -1.15 (-1.58%)
UNITY 23.04 Decreased By ▼ -0.51 (-2.17%)
WTL 1.29 Decreased By ▼ -0.01 (-0.77%)
BR100 6,717 Increased By 68.3 (1.03%)
BR30 22,517 Decreased By -52.7 (-0.23%)
KSE100 65,326 Increased By 747.2 (1.16%)
KSE30 22,146 Increased By 256.6 (1.17%)

LAHORE: Chairman Oil Marketing Association of Pakistan (OMAP) Tariq Wazir Ali on Sunday appealed to the Ministry of Petroleum and Oil and Gas Regulatory Authority (OGRA) to reconsider the proposed option of shifting from fortnightly to weekly fuel price adjustments.

In a statement issued here, Tariq Wazir Ali said that OMAP believes that such a move will have severe and detrimental consequences for the already beleaguered Oil Marketing Companies (OMCs) in Pakistan.

He also said that current economic landscape, marked by lifeline margins, substantial FX losses, a PSO-benchmarked pricing formula, negative IFEM, delayed settlements of ICFS, and intricate sales tax adjustments, has placed an overwhelming and unsustainable financial burden on OMCs.

Petroleum imports: OMAP seeks review of existing formula for calculating exchange rate

The proposed weekly adjustments will only exacerbate the challenges faced by OMCs, introducing heightened uncertainty and mental strain for both the companies and their end-users.

He further said frequent and unpredictable fluctuations in fuel prices will create a ripple effect across various sectors linked to transportation and logistics.

While showing his concern, Tariq said that this move will not only threatens to disrupt the delicate balance of the fuel industry but also poses a risk of panic in the economic landscape. In the current economic turmoil, introducing such a measure could have far-reaching and adverse effects on the buying decisions of both OMCs and consumers.

Moreover, the weekly adjustment mechanism raises concerns about potential fuel shortages, particularly in suburban and rural areas, as OMCs grapple with the challenges of adapting to a more volatile pricing structure. We urge Ogra to reconsider this proposal, taking into account the precarious state of the industry and the potential negative repercussions for the broader economy.

Tariq was of the view that in these challenging times, we request the Ogra and Ministry of Petroleum to refrain from implementing changes that may further jeopardize the survival of OMCs. Instead, we propose engaging in a comprehensive dialogue with industry stakeholders to devise more sustainable and well-thought-out solutions that align with the interests of all stakeholders.

Copyright Business Recorder, 2023

Comments

Comments are closed.

Mustafa Nov 27, 2023 11:35am
So much obsession for Oil prices .. better keep them at 1.1-1.3$ and forget about it .. ultimately it's imported product and there should be proper taxation on imported product .. We don't need to allow poor to produce more poor people.
thumb_up Recommended (0)