The Oil and Gas Regulatory Authority (Ogra) on Wednesday issued show cause notices to three oil marketing companies (OMCs) over breach of obligations of their licences. As per condition of the licences, these OMCs can not construct, develop or own any retail outlet in province or area where they do not have the required storage in compliance with conditions.

The officers of Ogra authorised by the Authority conducted a field visit of Swabi and Mardan in KPK on April 20, 2017 and observed that they have constructed outlets and operating for fuelling the vehicles. Three oil marketing companies - M/s Exceed Petroleum (Pvt) Ltd, M/s Kepler Petroleum (Pvt) Ltd and M/s Quality-1 Petroleum (Pvt) Ltd - were issued show cause notices with a directive to explain as to why they should not be proceeded against for imposition of penalty in accordance with rules. The companies have been directed to explain their position within 15 days.

In failure to comply with the directions, the authority shall be constrained to initiate ex parte proceedings against the company. It has also been learnt that a person, who contravenes any provisions of the Ordinance, these rules, terms and conditions of the licence, or the decisions of the authority, is punishable with a fine which may extend to Rs 10 million and in case of a continuing contravention with a further fine which may extend to Rs 1 million for every day during which such contravention continues.

Copyright Business Recorder, 2017