Latest news with #MasroorKhan
Business Recorder
30-04-2025
- Business
- Business Recorder
No regular member yet: Contract of Ogra Member (Finance) extended
ISLAMABAD: The Cabinet Division extended contract of Member Finance, Oil and Gas Regulatory Authority (Ogra) for one month as a regular member has yet to be appointed. The Cabinet Division issued a notification on Tuesday. The federal government has been repeatedly giving extension to Member Finance for one month to keep the four-member commission of the regulatory authority, operational. But appointment of Member Gas has yet to be finalised. The position has been lying vacant for the last two years. Similarly, OGRA Chairman Masroor Khan was given an extension for one year upon expiry of his contract in February 2025. Copyright Business Recorder, 2025
Express Tribune
19-04-2025
- Business
- Express Tribune
Ogra hears SNGPL's plea for tariff hike
SNGPL spokesperson Adnan Rafiq told The Express Tribune that demand for gas tended to increase during winter and weather conditions usually caused pressure at source to decline. STOCK IMAGE The Sui Northern Gas Pipelines Limited (SNGPL) on Friday demanded an increase in the gas prices and requested the Oil and Gas Regulatory Authority (OGRA) to lift the ban on the issuance new connections to domestic consumers. The conducted the public hearing on these demands at the SNGPL headquarters, with Chairman OGRA Masroor Khan in the chair. during the hearing, the SNGPL requested for an increase of Rs735 per million British thermal unit (MMBtu). The utility also said that the regasified liquefied natural gas (RLNG) domestic connections should be allowed immediately because a ban on them was reducing its revenues. It argued that the gas price should be increased, so that expenses on the expansion projects were met. The representatives of the commercial, industrial and domestic consumers strongly opposed the price increase. They argued that the people were already burdened, adding that many commercial consumers had disconnected their gas connections. Hotels and textile sectors also opposed the tariff hike. The SNGPL, while explaining the reasons for tariff hike, said that the proposed average fixed price for fiscal 2025-26 was set at Rs2,485.72 per MMBtu, adding that 51% of the price increase was meant for providing expensive RLNG gas to system gas consumers. It added that another 39% of the price increase was for the late payment surcharge (LPS) applied to the gas sector's dues ie, circular debt. The SNGPL stated that the share of operating expenses in the total revenue requirements of the company was only 4-6%.
Arab News
11-03-2025
- Business
- Arab News
Pakistan oil regulator in crosshairs of refineries, marketing firms over ‘take or pay' clause
ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) said this week it would mediate between refineries and Oil Marketing Companies (OMCs) to reach a 'mutually agreeable' resolution on differences over the authority's proposal to impose a 'take or pay' clause in purchase agreements with refineries, which OMCs argue would unfairly burden them. Pakistan has five oil refineries that process crude oil to produce refined petroleum products. Around 30 OMCs are licensed by the Oil and Gas Regulatory Authority (OGRA) to ensure the availability of petroleum products in the country. A conflict emerged between local oil refineries and OMCs over OGRA's proposal to include a take or pay clause in Sales Purchase Agreements (SPAs), with OMCs strongly opposing the move fearing liquidity crises, supply disruptions and potential market exits. Under the new contracts, oil marketing companies would have to pay at least cost to refineries if they are unable to pick up their allocated quantities of product. The chairman of the Oil Marketing Association of Pakistan (OMAP), a body representing two dozen small and medium-sized Oil Marketing Companies (OMCs), wrote a letter to OGRA Chairman Masroor Khan this week to formally oppose the proposed clause, saying it would serve the interests of refineries and large OMCs at the expense of smaller players, further consolidating the monopolistic control of big fish in the oil sector. OGRA spokesperson Imran Ghaznavi told Arab News refineries and OMCs had been asked to enter into written sale and purchase contracts. 'The take or pay clause means if an OMC does not buy the contracted quantity, it will still have to pay the purchase price or a penalty and vice versa,' he said. OMAP chairman Tariq Wazir Ali told Arab News on Monday the body had 'expressed our grave concerns regarding the proposed imposition of the take or pay clause in the SPAs between refineries and OMCs as it poses significant risks to the financial sustainability of OMCs.' He said imposing a take or pay clause would hamper competition, discourage new entrants, and ultimately harm the overall efficiency of the petroleum supply chain. He also said the proposed clause overlooked refineries' opportunistic behavior as they often withheld supply when prices were expected to rise, forcing OMCs into costly imports, and offloaded maximum stock when prices fell, causing financial losses to OMCs. Given these circumstances, it was unreasonable to expect OMCs to bear inventory losses while refineries remained insulated from the market's volatility, Ali said. 'The proposed mechanism must be accompanied by a robust enforcement framework ensuring that refineries adhere to the same rules of fair play and supply commitments, regardless of market price trends,' he added, urging OGRA to convene an inclusive consultative meeting with equal representation of all stakeholders, including small and medium OMCs, before finalizing a decision. 'MUTUALLY AGREEABLE CONTRACTS' The conflict has emerged after five leading oil refineries wrote a letter to the OGRA chairman, arguing that OMCs had frequently failed to pick up agreed quantities of High-Speed Diesel (HSD) and Motor Gasoline (MOGAS), which had disrupted refinery operations and threatened supply chain stability. The refineries said while they maintained commercial agreements with OMCs, it was OGRA's responsibility to enforce compliance with these contracts. The refineries pointed to Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules 2016, which mandates that local production must be prioritized before allowing imports. Keeping this in mind, they have supported OGRA's suggestion of introducing a take or pay clause to ensure product uplift but say it should be implemented through mutual agreement and strict regulatory oversight. 'The engagement sessions with the OMCs will start soon,' OGRA spokesperson Ghaznavi said, 'and OGRA will, in the best national interest and for achieving efficiency in the oil supply chain, mediate between refineries and OMCs for a mutually agreeable sale and purchase contracts.'
