OGRA convenes meeting to discuss mechanism of exchange rate adjustment

ISLAMABAD (PPI): The Oil and Gas Regulatory Authority (OGRA) has convened a meeting on March 21 to brief and align all the stakeholders with the prescribed format of the “Exchange Rate Mechanism” as devised and approved by the federal government.

According to a release issued here, OGRA invited the Ministry of Energy (Petroleum Division), Directorate General (Oil), CEOs and CFOs of Oil Marketing Companies, including OCAC and OMAP, to attend the scheduled meeting.

Some concerns with regard to the exchange rate mechanism raised have already been responded 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.

As per Federal Government’s pricing formula, the benchmark for the adjustment of the exchange rate is PSO’s import price and any revision in the price formula is the mandate of the federal government.

Since OGRA implements the Federal Government policy guidelines under OGRA Ordinance, it has arranged the meeting to bridge the communication gap among stakeholders and address their concerns.