ISLAMABAD: Oil companies (OMCs) have called on the government to provide a uncontrolled and equitable environment for all petroleum sectors to address challenges such as recurring shortages, reasonable revenues and a reduction in foreign exchange losses. Provide investment opportunities for everyone, rather than just clearing the policy individually.
It should be noted that the marketing, storage, transportation and refining of oil are the four wheels of a vehicle that must work together to ensure the supply of petroleum to the Pakistani consumer and the military. The impact on each of them will have a direct impact on the other three, ”said the Pakistan Petroleum Marketing Association (OMP).
In a letter to Cabinet Energy Committee Chairman and Minister of Planning and Development Asad Omar, OMEP CEO Dr. Elias Fazil said the current drafting policy, which is awaiting CCoE approval, will also affect oil trade and storage. And in the transport sector, it was important to consult with the four stakeholders for policy review rather than breeding factories.
The advisory council’s existing policy ignores the lower riparian oil sector
Dr. Fazil, a former member of the Oil and Gas Regulatory Authority and an advisory council of oil companies (OCC), said the lower riparian oil sector has been regulated by Pakistan Oil (refining, blending, transportation, storage and marketing). A.D. Updated in 2016 It was revised in 2016, but the government appears to be focusing on the refining sector when it comes to reviewing the downstream oil policy.
OMP, a representative of several OMCs, said: He added that over the next ten-and-a-half years, the lower basin sector has undergone a series of changes.
A.D. There were five refineries in 1997, and there are still five. Licensing standards.
Pakistan now has 70 percent of its gasoline demand and 50 PCs with high-speed diesel (HDS) standards, with five refineries. Last year, Pakistan spent $ 6.7 billion on oil imports, according to the Central Bank in July 2021, in addition to 6.8 million tons of crude oil and about 8.1 million tons of refined petroleum products.
OEMP argues that half of its foreign exchange goes to OMC refineries, POL supply chain at ports, port storage, port pipeline transport network, cross-country white oil pipeline (WOP) from Karachi to Mahmudco and Mahmoudkot -Fisalabad-Machihi, oil storage installations, and OMC depots and retail outlets.
“In terms of volume and volume of investment, the oil trading sector (storage, transportation and retail) is far superior to the refining sector,” Dr. Fazil wrote.
He said the refineries have played an important role in ensuring sustainable production of domestic oil and gas wells, but that the rest of the lower basin sectors are not equally responsible for addressing the country’s challenges. For example, in Pakistan, the quality of production from 87 rpm (non-euro level) to the euro-V level is now played a key role, but some filters are still struggling to meet the country’s specifications.
The OMAP head, led by the Ministry of Planning and Development, informed all stakeholders in the Board of the 2017 draft basin oil policy to the CCOE chairman. The draft focuses on private sector investment and outlines the short, medium and long term steps needed to overcome challenges over time.
Investors have provided a roadmap to strengthen the regulatory framework to ensure a more competitive market structure, providing greater legal certainty and more regulatory oversight and clear timelines for mediation and procurement and product specifications. Improvements. Surprisingly, however, the focus has now shifted to filtering alone.
The AMPA has demanded a world-class approach to allow small factories and MCS systems to move to the next level. There must be policy guidelines and framework for long-term energy integration to enable strategic capital investment for the right energy source.
OMAP said: “Until the level is raised, it should be done annually and automatically on the basis of inflation and there should be no restrictions on retail development.” He called on the Anti-Corruption Act to ensure that the policy framework is consistent and approved by parliament for 15 years to ensure strict quality control.
Published in the morning, August 23, 2021