OGRA increases oil tankers freight rate by 9.6%


Observer Report


The Oil and Gas Regulatory Authority has increased the freight rates for oil tankers by 9.60% on demand of the Oil Tankers Contractors Association which had earlier threated to call a country-wide strike. The new freight rates will be applicable from August 1, 2020.
The decision to increase the freight rate has been taken in violation of the Ogra Ordinance 2002 as the authority has lack “quorum” after retirement of Ogra chairman Uzma Adil.
The Ogra Ordinance 2002 states the chairman and two other members shall constitute the quorum for a meeting of the authority requiring a decision.
The post of Ogra member (oil) has been vacant since April and after retirement of the chairperson on July 17, the authority is left with only two members – member (finance) and member (gas) – leaving the quorum incomplete.