Government replaces acting Ogra chairman amid oil supply and pricing concerns

ISLAMABAD: The federal government has removed the acting chairman of the Oil and Gas Regulatory Authority (Ogra) and assigned the regulator’s top post to a senior Pakistan Administrative Service officer on an interim basis, amid concerns linked to oil supply management and petroleum pricing.

According to a notification issued by the Cabinet Division, Nabeel Ahmed Awan, a BS-22 officer of the Pakistan Administrative Service who is currently serving as secretary of the Establishment Division, has been given the additional charge of Ogra chairman with immediate effect. The arrangement will remain in place for three months or until a regular chairperson is appointed.

The outgoing acting chairman, Shahzad Iqbal, had been serving in the role on a look-after basis. He will continue as Member Gas.

The change comes as the government has faced criticism over the way the regulator has been run for more than a year. After the completion of former chairman Masroor Khan’s term, the government extended his tenure without legal cover instead of beginning the process for appointing a permanent replacement. Earlier this year, it again did not appoint a regular chairman and instead handed the charge to Iqbal.

Concerns raised in cabinet meetings

Iqbal had recently come under criticism during a meeting of the cabinet committee on oil products monitoring, chaired by Finance Minister Muhammad Aurangzeb, over what participants described as weak progress on automation and integration of the petroleum supply chain and pricing system. Participants in the meeting noted that he was unable to properly explain the situation and did not effectively defend the regulator’s position.

Last week, Ogra and Pakistan State Oil (PSO) were also criticised at a meeting of the special cabinet committee on petroleum over what was described as slow and inadequate online integration and automation of oil product stock and supply data for better visibility and monitoring.

Following that meeting, the government decided to involve law enforcement and investigation agencies to improve oversight of retail petroleum outlets and check hoarding. Members of the committee also questioned certain gaps in petroleum pricing, especially in the diesel rate build-up.

Dawn had reported that Dr Musadik Malik, who previously held the portfolios of energy and petroleum minister, suspected that the oil industry had apparently been allowed to make windfall gains and that timely corrective action had not been taken as prices rose sharply. Both Malik and Aurangzeb also expressed displeasure that PSO, despite being a public sector company, had not fully integrated its retail outlets and depots. Ogra, too, was criticised for slow movement on data integration even though the process had been officially ordered more than three weeks earlier.

In such conditions, market manipulators appeared to have benefited and engaged in aggressive hoarding as prices continued to rise in domestic and international markets. PSO’s retail integration was close to 60pc, while the position among private sector supply chain players was said to be even weaker.

Official statement and supply position

The Ministry of Finance, in an official statement issued after the meeting, said: "To reinforce implementation, it was decided that joint teams comprising representatives of the Petroleum Division, Ogra, FIA, and PSO will be deployed to selected PSO petrol pumps in Islamabad to support timely data entry, improve stock transparency, and ensure operational compliance."

Official sources said the prime minister was briefed on the situation and approved the reshuffle.

An earlier meeting had been convened after recent price adjustments to review the petroleum supply situation and market conditions. According to the information shared there, the overall supply position remained stable. Diesel stocks were said to provide around 25 days of cover, petrol stocks were sufficient to meet current demand, and crude oil stocks stood at about 12 days of cover, backed by incoming cargoes and scheduled imports.