Ogra powers to grow under new rules.

Byline: Khaleeq Kiani

ISLAMABAD -- The government is set to promulgate Pakistan Petroleum (Downstream Oil Sector) Rules, 2020 to transfer all oil and gas related regulatory functions and powers to the Oil and Gas Regulatory Authority (Ogra), currently being exercised by a sub-ordinate department of the Petroleum Division.

The decision was taken following an advice from the law ministry which pointed out that after the promulgation of Ogra Law of 2002, powers being exercised by the directorate general (DG) oil of the Petroleum Division were in violation of law. 'The provision of section 43, Ogra Ordinance overrides all other powers. It is settled law that rules being subordinate legislation cannot override the statute', said the Ministry of Law.

Before Ogra Ordinance 2002, the downstream oil sector was regulated by the government under the Pakistan Petroleum (Refining, Blending and Marketing) Rules, 1971. DG oil, working under the Petroleum Division was the designated authority in the said rules.

In March 2006, downstream oil regulatory functions were partly transferred to Ogra through amendments in the Pakistan Petroleum (Refining, Blending and Marketing) Rules. Under these rules, the 'authority' was bifurcated between chairman Ogra and DG oil.

Section 44(3) (a and b) of Ogra Ordinance provided for change of 'authority' to Ogra in respect of these rules while section 44(3) (c) provided that these rules shall stand repealed to the extent that any rules are promulgated pursuant to Ogra Rules 2002.

Later, Ogra's Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules 2016 were promulgated in January 2016 but while framing their rules relating to oil regulatory functions, Ogra covered only those functions which were under its exclusive authority.

In view of the repeal clauses of Ogra...