OGRA to Address Concerns of Stakeholders on Exchange Rate Mechanism

The Oil and Gas Regulatory Authority (OGRA) has convened a meeting to align all the stakeholders with the prescribed format of the Exchange Rate Mechanism devised and approved by the federal government. Ministry of Energy (Petroleum Division), Directorate General (Oil), CEOs, and CFOs of Oil Marketing Companies including OCAC and OMAP have been invited to attend the scheduled meeting. As per the federal government’s pricing formula, the benchmark for the adjustment of the exchange rate is Pakistan State Oil’s (PSO) import price and any revision in the price formula is the mandate of the federal government. OGRA implements the federal government policy guidelines under OGRA Ordinance. However, in order to bridge the communication gap among stakeholders, OGRA has arranged a meeting on March 21, 2023, to address the concerns of stakeholders. Some concerns with regard to the exchange rate mechanism have already been addressed by OGRA with the clarification that the calculations of exchange rate adjustments are done on the basis of data provided by PSO with the provision of payment documents, which are scrutinized by OGRA under federal government policy guidelines, wherein, the exchange rate adjustment impact is covered up to the maximum period of 60 days from the Bill of Landing of PSO and is limited to LC discharge date of PSO.