LAHORE, Sept 25: Wapda has cancelled a tender for the furnace oil purchase participated by the PSO earlier this month.

According to a Wapda press release, the PSO offer carried a premium higher than what has been quoted in the past.

“To ensure more competition in the procurement of furnace oil from the international market and having a substantial oil in its storage facilities, Wapda has scrapped the tender,” the release added.

It added that in disregard to the declared policy of the government on deregulation of the oil sector, prices are being fixed by the OMC’s cartel on its own, which has contributed to a hike in the electricity tariff over the last year.

“Wapda has approached the Oil and Gas Regulatory Authority with the request to look into the regulatory framework for the oil sector with an objective of reduction in the electricity tariff for the benefits of its consumers,” the release added.