Pakistan, May 15 -- In a bid to resolve long-standing tensions over petroleum supply, the government is drafting a legally binding framework to regulate agreements between oil marketing companies (OMCs) and local refineries. The initiative is aimed at ensuring compliance in fuel upliftment and reducing dependence on imports, particularly of high-speed diesel (HSD).
According to sources, the proposed plan will include a "take-or-pay" clause that mandates OMCs to lift their allocated share of locally produced fuel as decided in Product Review Meetings (PRMs). If they fail to do so, they will face financial penalties. On the other hand, if refineries fail to supply agreed volumes, they will be required to share their profit margins.
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