Forensic audit of OMCs by AGP: Leading 10 oil companies will face audit in background of in 2015’s gasoline lack.
ISLAMABAD: The Oil Department has actually asked the Auditor General of Pakistan (AGP) to start a forensic audit of leading 10 oil marketing companies (OMCs), which were allegedly involved in gasoline crisis in June in 2014.
The Petroleum Division has sent a set of questions to the AGP, asking it to focus on it while conducting the audit of OMCs.
The forensic audit will target top 10 OMCs in terms of market share as they represent virtually 95% of electric motor fuel (fuel) sales in the country.
In a letter sent to the AGP, the Oil Division claimed that the federal cupboard, in a meeting held on March 16, 2021, while going over the margins for OMCs as well as petroleum dealers, released regulations for taking on a forensic audit of the OMCs for the supposed fabricated shortage of motor fuel across the country in June 2020.
AGP will certainly examine whether any type of OMC broke its permit problems, hoarded the fuel in anticipation of cost hike at the start of July or was involved in any other illegal activity.
Earlier, the Ministry of Energy (Oil Department) had actually chosen to conduct the forensic audit via the AGP.
Auditors will ask the OMCs regarding the projected need as well as orders positioned for the purchase of electric motor gas from residential refineries and also overseas suppliers in June 2020.
They will certainly ask whether the refineries supplied the called for fuel quantity.
They will certainly likewise examine just how much supplies the OMCs kept in June 2020 to fulfill the licence problem imposed by the Oil as well as Gas Regulatory Authority (Ogra).
They will check out the reasons for not maintaining the needed supplies as well as just how much shortfall the OMCs dealt with throughout the duration under review.
Head Of State Imran Khan on Friday asked his Unique Assistant on Oil Nadeem Babar to step down and also got rid of petroleum secretary over the gasoline situation.
He also referred an instance to the Federal Examination Firm (FIA), telling it to finish the query within 90 days.
The Oil Department has actually charged the AGP with checking the circumstances where an OMC had stocks in its tank however its gas filling up stations were not supplied with the product, resulting in a dryout.
It has additionally informed the AGP to examine whether any type of OMC had gotten import and also the gas product remained in high seas, but was purposely not berthed in order to obtain cost benefit on July 1, 2020.
Other inquiries sent by the Oil Department to the AGP consisted of, was the item in the external support, as well as if so, were there any kind of port restrictions in berthing the vessel?
If the port did not have dumping constraints, could this have reduced the scarcity?
What is the common demand for June provided seasonal variation? What was the complete recorded need for June 2020? If the need for June 2020 stands for an anomaly, what are the factors for it?
Other such inquiries were, just how did the marketplace share for each of the leading 10 OMCs modification in June 2020 compared to their share a few months previously or a couple of months later on? Is there evidence of any type of OMC scheduling sales but not providing to its gasoline pumps?
Is there any kind of proof of any type of government firm or division conspiring with any OMC? Exactly how did the smuggled item influence the demand/supply position in June 2020?
What was the success of each such OMC for June 2020 and how did that compare with the typical month-to-month profitability for June in pre-Covid times along with just after Covid limitations were lifted.