OGRA tells PSO to refrain from acting against franchises



The Oil and Gas Regulatory Authority (OGRA) has directed the Pakistan State Oil (PSO) to refrain from its action against its franchisee resulting in serious safety hazards.

The All Pakistan Compressed Natural Gas Association (APCNGA) had appealed to OGRA that its members who are PSO Refuelling Station Franchisees were being allegedly subjected to extortion of undue and unlawful amounts by pressurising them through coercive methods.

The PSO has been unduly demanding from its franchisee refuelling stations over and above the OGRA prescribed per kg OMC Fee, to which PSO and its parent authority i.e Ministry of Petroleum and natural resources had earlier consented.

The PSO later refused to own up its own decision and directive from MP&NR. Having gone into arbitration with its franchises, PSO even refused to accept the verdict of the arbitrator dated 17 Sep 2010 and later dated 10 August 2015, while the arbitration award is already fixed before Islamabad high court for making it the “Rule of Law” and is sub judice.

The PSO through its powerful muscle in sheer violation of moral, legal and commercial ethics, is pressurizing its franchisee to forcibly accept its unlawful terms by (i) deliberately blocking the renewal of their explosive license; a serious safety violation, (2).reducing / terminating its petroleum supplies and (3).unlawful deductions on account of CNG recoveries (a sub judice matter) from franchisee’s advance payments for petroleum products.