The latest audit report from the Auditor General of Pakistan has brought to light the operation of approximately 7000 illegal petrol pumps scattered throughout the country. The report has raised serious concerns regarding the performance and oversight of the Oil and Gas Regulatory Authority (OGRA).
According to the audit report, OGRA’s actions have contributed to the hoarding and smuggling of petroleum products, enabling illegal activities to flourish in the industry.
One particularly alarming finding in the report was the joint storage of crude oil by Oil Marketing Companies (OMCs). The report identified this practice as facilitating unscrupulous activities within the sector.
Moreover, it revealed that 25 oil marketing companies were granted licenses by OGRA without fulfilling their required storage capacity. This situation could potentially jeopardize the availability and regulation of petroleum products in the market.
The report also pointed out certain oil marketing companies’ involvement in the unauthorized buying and selling of oil. It indicates a serious lack of oversight and compliance in the industry.
Additionally, the report found that OGRA’s decisions caused losses to local refineries. This was due to the allowance of diesel imports beyond their assigned quotas, significantly impacting the domestic oil refining industry.
Another concerning revelation was the practice of selling petrol in bottles and drums across the country. This poses significant risks to public safety and the environment.
The delivery of petroleum products in non-standard tanks and pumps was also identified as a major concern, as it can lead to potential accidents and environmental hazards.
