KARACHI: Rising oil advertising and marketing firms are dealing with an existential disaster resulting from unfair insurance policies and unchecked smuggling, the Petroleum Advertising Affiliation of Pakistan (OMAP) warned on Monday.
In a letter to Prime Minister Shehbaz Sharif, the Petroleum Advertising Affiliation of Pakistan (OMAP) stated “rising OMCs now face existential threats resulting from insurance policies that don’t bear in mind their operational realities”.
“Points such because the uncontrolled smuggling of Iranian diesel trigger not solely aggressive disadvantages but in addition important income losses to the exchequer. As well as, OMC’s overseas change loss adjustment mechanism and outdated margin buildings are exacerbating the monetary strain on these firms, difficult their very survival.”
The oil physique additionally questioned the function of the present operational focus of the Oil and Gasoline Regulatory Authority (OGRA). “It’s disturbing to watch that the advocacy of sure present OGRA insurance policies is basically favored by a couple of Oil Advertising Corporations (OMCs) who management a big share of the market,” the letter stated. “This bias not solely stifles competitors, but in addition places rising OPCs, which have invested closely in increasing Pakistan’s strategic petroleum reserves, at a critical drawback. OGRA fully ignores this and pays no consideration to offering a good and stage taking part in discipline for rising OPCs.”
She famous that what’s most regarding is OGRA’s push to decontrol the costs of petroleum merchandise with out comprehensively partaking stakeholders or contemplating the broader impacts on the financial system and employment. “Such a transfer, if undertaken with out due diligence and inclusive planning, may probably destabilize the sector and result in job losses, affecting numerous Pakistani households.”
In mild of those challenges, it’s crucial that OGRA adopts a extra inclusive and balanced strategy to make sure that a stage taking part in discipline is offered to all stakeholders, particularly rising OMKs. Insurance policies must be reassessed and aligned with the realities of all market members to foster a very aggressive and powerful oil sector, he added.
OMAP sought a gathering with the Prime Minister to debate these crucial points intimately. “Your intervention is important to stop potential irreversible harm to a major a part of the oil sector and to make sure that the sector can proceed to contribute positively to Pakistan’s financial system.”