Islamabad-Oil and Gas Regulatory Authority (OGRA) has suspended the Marketing License of Hascol Petroleum Limited Khyber PakhtunKhwa and also imposed the penalty of Rs10 million on the Company for violating rules and regulation.

Hascol Petroleum Limited (HPL) was found operating illegal/unauthorised storage and selling of petroleum products (petrol & diesel) at Amangarh Depot, therefore the OMC License of Khyber PakhtunKhwa has been suspended with immediate effect, said a spokesman of the OGRA here Wednesday.

The Regulator has carried out the investigation on the issue of illegal storage by Hascol Petroleum Limited in Peshawar (KP). Based on the investigation and the documents, provided by HPL, it was proved that HPL remained involved in severe violations of Law/Rules and failed to provide reasonable justification for the operation of this depot despite OGRA’s clear directives for the stoppage of operation of Amangarh depot till the fulfilment of all legal requirements & OGRA’s permission in January 2020.

The matter came to the lame light again after a fire incident at the illegal storage, the official source said. The company was served with Show Cause Notice on October 13, 2020 on the illegal operation of Amangarh Depot and to explain the facts by appearance. After hearing and due consideration, the Authority suspended Hascol Petroleum Limited’s marketing activities in Khyber Pakhtunkhwa and directed them to immediately stop all marketing activities/ sales at outlets in Khyber Pakhtunkhwa till further orders. In addition to the above, the Authority also imposed a penalty of Rs10 Million on breach of rules by HPL.

The official said that, the Marketing license of Hascol petroleum Limited will stay suspended and the OMC will not be able to operate in KP unless it fulfils all the legal requirements for the operation of Storage depot in the province. Yes, they have to build an Oil Depot in the areas specified by the OGRA for the purpose of Oil storages, the official maintained. 

Further, in order to avoid any inconvenience to general public, all Oil Marketing Companies (OMCs) are directed to augment supplies to their retail outlets in Khyber Pakhtunkhwa.