Latest news with #Ogra
Business Recorder
a day ago
- Business
- Business Recorder
Minister orders Ogra to review gas firms' revenue needs
ISLAMABAD: Minister for Petroleum Division, Ali Pervaiz Malik, has directed the Oil and Gas Regulatory Authority (Ogra) to review every component of the revenue requirements of the Sui gas companies. The aim is to reduce gas prices and address the growing circular debt issue, sources told Business Recorder. The circular debt in the petroleum sector has reached approximately Rs 2.8 trillion. The government, under Prime Minister Shehbaz Sharif is working to resolve this issue in consultation with the International Monetary Fund (IMF). An initial plan has been drafted to mitigate the gas circular debt without placing an additional burden on consumers. To tackle core challenges in the gas sector — including circular debt, LNG tariffs, unaccounted-for gas (UFG) losses, and the rising share of LNG in the national gas mix—the government has established four specialized panels. Consumers lack protection: Ogra failing to act against gas companies: PAC report The petroleum minister, who also chairs the main committee, is overseeing the sub-committees tasked with preparing final recommendations for the highest level of government. In a recent meeting, a senior Joint Secretary from the Cabinet Division read out the composition and Terms of Reference (ToRs) of the four sub-committees. Dr Fakhray Alam Irfan, Secretary of the Power Division and head of the sub-committee on LNG demand synchronization, reported that he chaired a meeting on July 21, 2025. The meeting included representatives from PSO, SNGPL, and CPPA. The Power Division presented a report on the forecasting and management of RLNG demand in the power sector. Dr Irfan pointed out that one of the main issues discussed was the parking of NPD (Net Present Deficit) claims under LNG contracts due to reduced power offtake and the must-run status of RLNG-based power plants. He acknowledged that while the power sector has mostly consumed gas according to firm demand, occasional shortfalls in RLNG lifting occur due to fluctuating power demand caused by weather, generation mix, and system constraints. He added that the pipeline storage limitations raised by the Petroleum Division are valid. To address this, he stressed the need for accurate demand forecasting and improved coordination between NPCC and SNGPL, except in unforeseen circumstances. He also recommended that the Finance Division be consulted on the NPD issue. It was noted that the sub-committee on circular debt mitigation has not yet convened. However, the Additional Secretary (Policy) provided an update on the sub-committee for LNG tariff rationalisation, which met on July 19, 2025. Representatives from all companies across the LNG/RLNG supply chain participated. The meeting covered detailed discussions on various RLNG pricing components. Suggestions were made for reducing or revisiting charges such as terminal fees by PQA, customs duty, FED, Sindh Cess, and company/importer margins. The sub-committee is currently reviewing these cost elements, and formal recommendations will follow. Meanwhile, Ogra Chairman, Masroor Khan who leads the sub-committee on domestic gas tariff efficiency and transparency reported that their meeting on July 21, 2025, was attended by representatives from the Sui companies, KPMG, and the Petroleum Division. The focus was on enhancing operational efficiency and reducing UFG. He noted that the companies are making progress in lowering UFG levels in accordance with benchmarks set by the Ogra. He also provided an update on efforts to review the Return on Asset (ROA) formula for Sui companies. Although the Ogra has made several attempts to hire a consultant, the process has so far been unsuccessful. Recently, the Ogra issued an Expression of Interest (EoI) to potential consultancy firms, and the selection process is expected to conclude soon. Minister Ali Pervaiz Malik emphasized the Ogra must complete its review of each component of the Sui companies' revenue requirements within the next few weeks. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business
- Business Recorder
TTS roadmap: Ogra meets key oil industry players
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) conducted an interactive session on Monday with key stakeholders from Pakistan's oil industry to review the progress and future roadmap of the nationwide Track and Trace System for the oil supply chain. The session, held via Zoom, is part of OGRA's broader digital transformation agenda to enhance transparency, safety, and efficiency across the oil sector. Chaired by Ogra Chairman Masroor Khan, along with Member Oil Zain ul Abideen and Member Finance Shakeel Ahmed, the session featured a detailed presentation on the system's operational framework, implementation strategy, and expected outcomes. Ogra launches second phase of digitising oil supply chain Director General Explosives, Director General Oil, Chairman of OCAC and over 100 representatives from the industry which include all refineries, prominent oil marketing companies (OMCs) such as PSO, PARCO, Wafi Energy, Gas & Oil Pakistan, Be Energy, Puma Energy, Zoom, Euro Oil, Fossil Energy and PGL participated in the session. The chairman Ogra emphasised the critical need for digitalisation to modernise the oil supply chain and curb inefficiencies, illegal practices, and safety hazards. He urged industry stakeholders to work collaboratively with Ogra to ensure the success of this national initiative. Speaking on the occasion, Member Oil Zain ul Abideen reiterated that the Track & Trace System will monitor the movement of petroleum products from refineries and import terminals to depots, tank lorries, and retail outlets. The system integrates ERP platforms, GPS tracking, and centralised dashboards to enable real-time monitoring and data-driven regulation. The Ogra officials in the presentation, highlighted that 29 OMCs have already deployed ERP systems, and approximately 15,000 tank lorries are equipped with GPS tracking. This digital backbone will support Ogra's upcoming full-scale enforcement efforts aimed at preventing illegal decantation, fuel smuggling, and other supply chain malpractices. The session reaffirmed Ogra's commitment to fostering a transparent and secure petroleum supply ecosystem in Pakistan. Copyright Business Recorder, 2025
Business Recorder
23-07-2025
- Business
- Business Recorder
Ogra holds seminar to initiate comprehensive digital platform
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has conducted a seminar at its headquarters to formally initiate a comprehensive digital platform to fully digitise Pakistan's oil supply chain and is at highly advanced stage of the development. The digitisation will cover the import terminals to the fuel dispensing stations, in a move aimed at eliminating inefficiencies, curbing pilferage, and restoring public trust in the energy sector. In a decisive statement, Ogra Chairman, Masroor Khan, affirmed: 'Pakistan's oil sector must embrace digitisation — fully and without delay. From the point of import to the petrol pump, every link in the supply chain must be digitally monitored. Digitisation is essential not just for operational efficiency, but also for national transparency and integrity.' The Ogra is committed to leading this transition and will not tolerate any obstruction, whether deliberate or due to neglect. 'Let me be clear: any obstruction to digitisation — whether by design, neglect, or vested interest — will be addressed firmly. We cannot allow outdated systems to hold back national progress,' the chairman added. Under this initiative, every component of the oil supply chain — including refineries, storage terminals, tank lorries, Oil Marketing Company (OMC) depots, and retail fuel stations — will be brought under a unified digital oversight framework. This real-time monitoring system will allow for improved tracking, better data integrity, and enhanced regulatory control. OGRA clarified that this initiative is not a proposal, but a regulatory mandate. 'Digitisation is now a legal requirement. Clear timelines and enforceable penalties will ensure compliance. All stakeholders must align with this transformation or face regulatory consequences.' This bold move positions Pakistan among progressive nations that are integrating technology with energy regulation to enhance national efficiency, reduce economic losses, and build public confidence, the Ogra spokesman said. Copyright Business Recorder, 2025
Time of India
16-07-2025
- Business
- Time of India
Pakistan's explosive negligence: Half of LPG tankers operate illegally, endangering millions
Members of Pakistan's National Assembly Standing Committee on Planning, Development and Special Initiatives has nexpressed grave concern over the "poor regulatory environment" in the petroleum sector after it was revealed that nearly half of the country's liquefied petroleum gas (LPG) bowsers are operating without any registration or oversight, Dawn News reported. Chairing the meeting, MNA Abdul Qadir Gillreferred to the January 27 LPG tanker explosion in Multan, stating that such tragedies are becoming increasingly frequent. "Providing meagre aid to victims is not a solution. This must stop, we must take action against those found responsible," he asserted, according to Dawn News. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Learn The Most Successful Intraday Strategy in Just 2 Hr. thefutureuniversity Learn More Undo The committee was informed that of around 2,000 bowsers transporting LPG across the country, only 800 are registered with the Department of Explosives, and a mere 247 are licensed by the Oil and Gas Regulatory Authority (Ogra). This startling gap in regulation raised serious questions about public safety, Dawn News reported. Committee members criticised the unchecked and hazardous sale of LPG in plastic bags in Khyber Pakhtunkhwa and incidents of LPG theft in Sindh. Several lawmakers condemned Ogra for its failure to monitor and regulate LPG transport and safety measures effectively. The panel noted that there was little surveillance, infrequent inspections, and poor coordination between regulatory bodies, Dawn News reported. Live Events Officials from the petroleum regulatory authority acknowledged the regulatory lapses and admitted that existing laws were inadequate. They cited recent efforts, including setting up a regional office in Multan and initiating awareness campaigns. However, the committee expressed dissatisfaction with the accountability process and termed the Rs 600,000 compensation to Multan victims "measly," urging stricter action and immediate suspension of licences of entities under investigation, Dawn News reported. In a separate agenda item, the subcommittee, led by Syed Samiul Hassan Gillani, presented findings on development projects formerly handled by the defunct Public Works Department (PWD). Concerns were raised about the operational capacity of Pakistan Infrastructure Development Company Ltd (PIDCL), with members warning that merely transferring PWD personnel would not resolve systemic inefficiencies and corruption, Dawn News reported. The committee reconstituted the subcommittee to review the status of ongoing projects and submit findings within 30 days, stressing the need for a transparent and effective federal-provincial coordination body, Dawn News reported.
Express Tribune
16-07-2025
- Business
- Express Tribune
Fuel prices hit new peaks, sending consumers reeling
Listen to article The government on Tuesday hiked the prices of petroleum products by up to Rs11 per litre for the second half of July 2025 in a regressive step that would exacerbate the economic hardships faced by the common man. This is the second consecutive increase in the prices of petrol and diesel since the start of the new fiscal year on July 1. On June 30, the government had increased the fuel prices by up to Rs10 for the first fortnight of the current month that ended on Tuesday. Separately, the Oil and Gas Regulatory Authority (Ogra) announced a reduction in the prices of re-gasified liquefied natural gas (RLNG) for the current month, while the rate of kerosene oil and the light diesel oil also came down slightly. According to a notification issued by the Finance Division, petrol price went up by Rs5.36 — from Rs266.79 to Rs272.15 per litre, while the high-speed diesel (HSD) rose by Rs11.37 per litre — from Rs272.98 to Rs284.35 for the July 16-31 period. This latest adjustment in the petrol and HSD prices reflects persistent volatility in the global oil markets. It also shows the government's fiscal constraints in meeting its ambitious revenue targets as it is already charging highest rate of petroleum levy (PL) on the petroleum products to collect revenue. The government said that it had taken the latest decision on the recommendations of Ogra and the relevant ministries. "The Government has decided to revise the prices of petroleum products for the fortnight starting July 16, based on the recommendations of OGRA & the relevant ministries," it said. Ogra had recommended the increase in the prices of petroleum products based on Rs78.02 per litre PL on petrol and Rs77.01 on HSD. It had also assumed Inland Freight Equalisation Margin (IFEM) at Rs8.89 per litre on petrol and Rs6.04 on HSD. The exchange rate adjustment was calculated at Rs3 per litre on petrol and Rs2 on HSD. Diesel is widely used in agriculture and freight transport, and any price increase directly impacts the cost of goods and services. Petrol, meanwhile, fuels motorcycles and cars, and serves as an alternative to compressed natural gas (CNG), especially in Punjab, where CNG stations rely on imported LNG. The fresh price hike is expected to further widen the gap between stagnant household incomes and the rising cost of living. Analysts have warned that without the fiscal space or targeted subsidies, the brunt of global oil volatility will continue to be passed on to the end users. The government had the space to rescue the consumers from the current hike in oil prices by slashing the rate of PL, but it did not compromise on revenue collection and, hence, passed on the full impact of the increase in oil prices in the global market to the consumers. On July 1, the federal government has increased petrol and HSD prices significantly, attributing the hike to global market volatility amid the Iran-Israel war. Petrol was increased by Rs8.36 to Rs266.79 per litre, and HSD by Rs10.39 to Rs272.98, based on Ogra's recommendation. Pakistan imports petroleum products to meet around 85% of its local consumption, whereas 15% needs are met through locally-produced crude oil. At present, consumers are already paying over Rs77 per litre in PL. The current year's budget also includes a new carbon levy, further pushing the fuel prices. Meanwhile, in the deregulated market, kerosene oil becomes cheaper by Rs3.10 and the price of the LDO came down by Rs1.85, while Ogra, through a notification, announced a reduction in the RLNG prices for the current month on the back of slight decrease in the delivered ex-ship (DES) price. According to the Ogra notification, the RLNG prices for the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company (SSGC) had undergone changes in both transmission and distribution segments. For the SNGPL, the new transmission price has been set at $10.8338 per million British thermal units (mmBtu), down from $11.0154, reflecting decrease of $0.1816, or 1.65%. The distribution price has been revised to $11.5787 per mmBtu from $11.7816, marking decrease of $0.2029, or 1.72%. Similarly, the SSGC's transmission price has been decreased from $9.7284 per mmBtu in June to $9.4713 in July, a decline of 2.64%. However, the distribution price has also gone down from $10.8650 per mmBtu to $10.5737, a reduction of $0.2913, or 2.68%.
