ISLAMABAD: While setting aside the instructions of Ogra, the Parco oil refinery has jacked up the price of high octane blended component (HOBC) by Rs 4.41 per liter which was likely to go down by Rs 3.50 per liter from October 1st, owing to complete deregulation of the price of the product.

Sources in the ministry of petroleum and natural resources informed DawnNews that though the imposed charges of Inland Freight Equalisation Margin (IFEM) have been revoked on October 1st, yet Parco has allegedly increased the ex-refinery price of HOBC by Rs 4.41/liter.

Oil and Gas Regulatory Authority (OGRA) ostensibly entrusted with responsible job of regulator on the affairs of petroleum and natural resources has taken notice of this apparently illegal act of the refinery and advised to immediately give a reduction in the per liter price of HOBC  by Rs3.50 which was on 30th September. However, Parco has so far refused to follow the orders of the regulatory authority as no cut in the price of the product has been made till the filing of this story.

Parco, responding the instruction of Ogra in a written letter, has said that if any oil marketing company transports the HOBC from Karachi to Muzaffargarh then it will have to pay some Rs 4.41 per liter as freight charges so it is the right of the refinery to charge it.

It is, however, testimony of the fact that 60 paisa per liter was being charged from the consumers to pay transportation charges to the refinery in accordance with the Economic Coordination Committee (ECC) approved Petroleum Policy.

Similarly, as Parco is producing HOBC by refining the crude oil which is being transported through a pipeline so the refinery is not authorised to double charge the consumers by Rs4.41 per liter under the same head transportation charges.

Further, Parco is not authorised to charge a single penny to the consumers under head transportation charges prior to the approval of the ECC.

When contacted, the spokesman of OGRA has confirmed the said info while saying that presently Parco has set Rs 95.58 the ex-refinery price of HOBC though Ogra has advised to set it as of Rs 91.57 per liter. However, OGRA in a letter to the petroleum ministry had asked to intervene and sensitively look into the affair of public interest in a bid to get reduce the price of HOBC by Rs 3.50 per liter.

He also disclosed that per liter price of the product was expected to witness a decrease by Rs 3.50 per liter from October 1st except Karachi city where price was to go up by only 36 paisa per liter under weekly review price mechanism.