OGRA has asked the 36 oil marketing companies revoke their licenses

The Energy Ministry requested the cancellation of provisional licenses of 36 oil marketing companies (OMC), as announced on Tuesday by the Oil & Gas Regulatory Authority (OGRA). The Business Recorder.

Licenses are canceled due to non-compliance by OMCs with the requirements prescribed. 66 licensed OMCs currently operate across the region, with almost 92 percent of the market share from the top eight firms, the news report said.

It is recorded that after licensing, the 36 OMCs involved refused to establish storages, which is a condition of the agreements. It was supposedly only exchanged in Iranian diesel and a final closing notice is then given.

Some other OMCs showed lethargy in the development of the infrastructure they needed. These businesses are lagging behind and are making no progress. However, these firms have received a deadline of one year from the authorities.

The Cabinet instructed the Petroleum Division to reinforce control of the OMCs and fuel stations in March of this year and to implement necessary administrative and judicial reforms. As part of its expanded authority to carry out appropriate measures to hold OMCs under review, the new license revocation order is released.

During the 2020 oil crisis in the region, a commission of inquiry on OMCs stated that some of the causes for the petrol crisis were illicit activities by the private storage firms, Joint Ventures, and OMC hospitals, as well as breaches of license conditions.

The Commission recommended punitive and departmental measures against officials responsible and ordered that the position of DCs be restored and stocks of OMCs be inspected, provisional marketing licenses canceled and strategic storage established. The Commission recommended
×