ISLAMABAD: Apropos reports in the print and electronic media regarding issuance of 21 licences to establish oil marketing companies (OMC) in the last six months, the Oil and Gas Regulatory Authority (OGRA) has clarified that it has issued only construction licences strictly as per the applicable rules and policies of the federal government, in accordance with its objective to increase private investment.
OGRA officials said that the country was currently in dire need of new oil storages due to drastic increase in demand of petrol and diesel during the last few years. Further, only those companies would be allowed to market the product that completed the required storage, meeting all technical and other requirements as per rules, it said.
In 2006, the government policy/criteria for establishing new OMC entailed an upfront equity of Rs 3 billion and investment of Rs 6 billion in three years, and the criteria remained in field until 2010.
Due to meagre investment in storage facilities and to encourage new investors for development of storage infrastructure in the country, the government relaxed the policy in 2010, with Rs 100 million as equity and investment of Rs 500 million in three years.
Since July 2016, the OGRA has granted 21 licences for construction of oil storage infrastructure to the companies namely Best Petroleum Private Limited, Oil Industries Pakistan Private Limited, Accel Petroleum Private Limited, Euro Oil Private Limited, Oleum Petroleum Private Limited, Al-Noor Petroleum Private Limited, Dammam Petroleum Private Limited, Max Fuels Private Limited, Fast Oil Private Limited, Hi-tech Lubricants Private Limited, Jinn Petroleum Private Limited, Vital Petroleum Private Limited, International Petrochemicals Private Limited, Allied Petroleum Private Limited, Only One Energy Private Limited, Pak Gasoline Services Private Limited, Shams Petroleum Private Limited, Berkeley Oil & Gas Development Private Limited, Taj Gasoline Private Limited, My Petroleum Private Limited and Terminal One Limited.
According to the authority, these licences were issued to new applicants to develop the storage infrastructure only and not for the purpose of marketing of the product or development of petrol pumps. Once, the companies complete their storage facilities as per OGRA technical standards, they are allowed to market the product and develop petrol pumps to the extent of province/area where they have the storage facilities in place, the authority said.
