October 30, last date to install tracking devices in oil tankers: OGRA

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ISLAMABAD, Oct 21 (APP): Oil and Gas Regulatory Authority (OGRA) Friday informed the Senate Sub-Committee on Petroleum and Natural Resources that October 30 was the last date for installing tracking devices in oil tankers to prevent abuse of Inland Freight Equalisation Margin (IFEM).

The representatives of OGRA apprised the committee meeting, chaired by Taj Muhammad Afridi, that the authority was focussing on to introduce the tracking system and physical verification of oil depots and petrol pumps after the reported misuse of IFEM.

After the deadline, they said the authority would launch an inspection drive and take action against the oil tankers operating without tracking system and OMCs not complying with the directives.

IFEM is basically the transportation cost from the refinery/ port to the oil depots and storage with no profit element for Oil Marketing Companies (OMCs).

The committee thoroughly discussed the IFEM, under which special tariff was charged for far-flung areas but the supply was delivered to nearby petrol pumps or dumped at illegal petrol pumps.

Expressing concern, the chairman observed that there should be an effective system of physical verification of oil depots and petrol pumps to curb any dumping.

Afridi directed the officials concerned to present detail of all OMCs, including locations of their depots and petrol pumps, operating in different parts of the country in next meeting.

He underlined the need for an effective mechanism of checking quality and quantity of oil being sold at the dealers’ outlets.

The committee was holding discussion on a petition filed by
Maqsood Ahmed Awan and Munawar Khan regarding problems being faced by the oil sector.

The committee expressed corcern over Director General (Oil) Ministry of Petroleum and Natural Resources Abdul Jabbar Memon’s departure from the meeting without permission.

It directed the Secretary Committee to write a letter to the Ministry about seriousness of the DG Oil who had been sent to represent the Petroleum Minister and Secretary.

Senator Mir Muhammad Yousaf Badini said he would move a privilege motion against the DG Oil.

Among others, Senators Baz Muhammad Khan and Mir Muhammad Yousaf Badini, representatives of Pakitan State Oil, OGRA, National Electric Power Regulatory Authority, Oil Companies Advisory Council, different OMCs and the petitioners attended the meeting.