March 17, 2023 (MLN): The Oil and Gas Regulatory Authority (OGRA) has scheduled a meeting on March 21, 2023, to brief stakeholders on the prescribed format of the "Exchange Rate Mechanism" as devised and approved by the Federal Government.
The meeting will be attended by representatives from the Ministry of Energy (Petroleum Division), Directorate General (Oil), CEOs, and CFOs of Oil Marketing Companies including OCAC and OMAP.
The purpose of the meeting is to align all stakeholders with the Federal Government's pricing formula and address any concerns regarding the exchange rate mechanism.
In response to some concerns raised about the exchange rate mechanism, OGRA clarified that the calculations of exchange rate adjustments are based on data provided by PSO, which is scrutinized by OGRA under Federal Government policy guidelines. The impact of the exchange rate adjustment is covered for a maximum period of 60 days from the Bill of Landing of PSO and is limited to the LC discharge date of PSO.
Under the Federal Government's pricing formula, the benchmark for the adjustment of the exchange rate is PSO's import price. Any revision in the price formula is the mandate of the Federal Government. OGRA, as the regulatory authority, implements the Federal Government's policy guidelines under the OGRA Ordinance.
OGRA has assured stakeholders that it is committed to transparency and accountability in implementing the Federal Government's policies and guidelines and will continue to work closely with stakeholders to ensure a fair and efficient energy market in Pakistan.
