Refineries oppose Ogra’s pricing deregulation model

Strongly opposing the petroleum pricing deregulation model suggested by the Oil and Gas Regulatory Authority (Ogra), the oil refineries have started shutting down their refining units due to storage constraints caused by declining sales of domestic products and the rising influx of smuggled products throughout the country. “Why would oil marketing companies (OMCs) lift oil product from refineries, involving a substantial impact of taxes, when they can access cheaper product in the black market?” questioned an official representing the refining sector. He added that Ogra had proposed doing away with requirement of uplifting domestic products from refineries, giving companies the freedom to source their products at their own will on commercial basis.