Reversal of deregulation policy, dissolution of OGRA on the cards
06 December, 2012
ISLAMABAD: By reserving the deregulation policy in the country, the government has, in principle, decided to dissolve the Oil and Gas Regulatory Authority (OGRA).
Well-informed sources in the Ministry of Petroleum and Natural Resources told here on Wednesday that the government is considering to reverse over a dacade-old policy of oil and gas sector deregulaion.
Hence the Ogra was set up through an ordinance, therefore, President Asif Ali Zardari is most likelt to issue a fresh ordinance to repeal the Ogra ordinance eventually dissolving the body. The pre would issue the fresh ordinance as soon as the government completes the pre-reqiusite process.
The sources informed that the oil and gas regulatory body has been failed to operate as an effective regulator as was the mandate given to it, therefore, to achieve the desired results, the government has decided its dissolution.
The sources further said that after dissolution of the regulatory body, oil marketing companies would determine the prices of petroleum products while the gas prices would be determined by the gas companies.
However, the Ministry of Petroleum and Natural Resources would be the final authority to approve these final prices of both oil and gas, the source added.
Sources said that government is considering to adopt the same policy regarding the other regulatory bodies in the country which have been failed to complete their mandate.
It is pertinent to mention here that Oil and Gas Regulatory Authority (OGRA) was set up under the Oil and Gas Regulatory Authority Ordinance, 2002 to foster competition to increase private investment and ownership in the midstream and downstream petroleum industry and to protect the consumer interest.