ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) convened a meeting with the oil marketing companies (OMCs) on Friday on their request to discuss the mechanism of exchange rate adjustment last week.

The meeting was attended by the industry including the OCAC, the OMAP, representatives of the Ministry of Energy (Petroleum Division), and the Ogra. The regulator’s finance department explained the Mechanism of Exchange Rate Adjustment in-depth, so that the stakeholders may understand the process.

It is pertinent to mention that the Ogra implements the policies of the federal government. Further, the Ogra Authority heard the issues of the OMCs and wherein, detailed deliberations were done in this regard to improve the understanding of the participants. It has been noted with great concern that a counterproductive media campaign is being run against the Ogra, which is absolutely rebutted.

Ogra convenes meeting on exchange rate mechanism

The Ogra is cognisant of its mandate and is fully committed to work in public interest.

Federal Government/ ECC of the Cabinet Division has given price formula of MS (Petrol) and HSD (Diesel) with effect from 1st September 2020, wherein, the mechanism through which the actual forex losses could be recovered as under:

Exchange rate to be used as provisionally available for Pakistan State Oil (PSO) but to be converted to actual upon the retirement of LC (not later than 60 days from BL date), any adjustment to be made as prior period adjustment as per present practice, already approved by ECC vide its decision on April 09, 2020. Other cost components (C&F price of PSO, incidentals, custom duty) mentioned above may also be adjusted on an actual basis in the next fortnight.

Copyright Business Recorder, 2023