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OGRA opposes transport cost of Rs 0.15 per litre to Byco Refinery

ISLAMABAD: Oil and Gas Regulatory Authority (OGRA) has opposed allowing collection of Rs 0.15 per litre to Byco Refinery as crude transport cost from consumers, while Pakistan State Oil (PSO) has sought a guarantee from the Refinery for guaranteed provision of petroleum oil and lubricants (POL) products.
Official sources on the condition of anonymity told Daily Times an important meeting held under the chair of Shahid Khaqqan Abbasi Minister for Petroleum and Natural Resources to review and discuss concessions and procurements of POL products. 
OGRA denied giving transportation cost to the Byco Refinery on the grounds that commercial business should be fair and transparent and no special treatment should be given to a specific refinery.
OGRA officials on the occasion refusing with the idea to allow collection of transport cost from consumers has adopted a stand the Refinery was established in private sector and transport of crude oil was its responsibility. Byco Refinery is not authorised to collect transport cost from POL consumers, an official said. Byco is a private refinery and it should run on commercial lines without collecting freight from consumers. 
Chief Officer (CO) Byco Refinery Amir Abbasi during the course of this meeting was of the stand OGRA was not providing the transportation cost to Byco under Single Point Mooring (SPM) facility in the sea despite the approval of Economic Coordination Committee (ECC) of the Cabinet in this regard.  
And, this denial is adding problems to the Byco Refinery, as PSO was not procuring diesel and furnace oil despite an agreement between both. 
Representatives of PSO on the occasion sought a guarantee from the Byco for non-stop supply of POL products to it and also made it clear that if Byco failed in supplying products then fine would be collected from the Refinery. The representatives were of the stance Byco Refinery was not fully operational as some times its production was increased while it decreased on the other time. Similarly, Byco first tries to sales out products to its marketing company Byco Petroleum and later it approaches the PSO.
Similarly, PSO said since it purchased POL products from Kuwait Petroleum under a long term agreement to meet the country’s need so there is need that Byco should ensure a certain quantity and also give a guarantee for permanent purchasing then PSO was ready to ensure continuous supply of POL products to it. 
Minister for Petroleum said as a refinery has been established so procurement of POL products should be made to save remittances. 
He advised Director General Oil and Secretary Petroleum to review the matter and later send a summary over concessions to Byco Refinery should be dispatched to the ECC for further process. 
ECC of the Cabinet had given Byco the go-ahead in August 2012 to charge 15 paisa per litre as crude transport cost from consumers, which was expected to provide the refinery Rs 150 million to Rs 200 million in a year for taking delivery of crude oil through a 15 kilometer pipeline at its SPM facility. The ECC gave the approval despite resistance from the Ministry of Finance and the Federal Board of Revenue.

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