Ref.: OGRA-748, March 21,2024 The Chairman Oil & Gas Regulatory Authority, Islamabad. ‘Subject: PRICING OF PETROLEUM PRODUCTS ~ CHANGE IN COMPUTATION OF EXCHANGE RATE Dear Sir, Weare writing with regards to the exchange rate computation methodology (True Up), being used for calculating ‘the fortnightly prices of petroleum products. Our request is to revert to the previous methodology, thereby revertingto a simpler and clearer process. ‘As you are aware, the exchange rate applicable at the time of pricing was used for price computation in the past. However, effective August 1, 2022, OGRA changed its methodology. Instead of using the latest available exchange rate, OGRA shifted to a 15-day average exchange rate, despite reservations from the Oil Industry. This change created exchange rate exposure for the Oil Industry. We understand that using the latest available exchange rate at the date of price change reflects the exchange rate for the upcoming fortnight and would be a better option compared to the current practice of using a 15-day average exchange rate. Since the Pakistani Rupee has currently stabilized, the impact of correcting the pricing. mechanism will be negligible. Therefore, we propose reverting to the system of using the exchange rate applicable at the time/date of pricing change. We took forward to your usual support for implementation of the above recommendation. We are also available for an opportunity to present the proposal in person. Regards Sooo) ‘Syed Nazir. Secretar il Companies Advisory Council Ce: Secretary, Ministry of Energy - Petroleum Division Paget of 1 COIL COMPANIES ADVISORY COUNCIL Ground Floor, OCC! Building. Taipur Roos, Off. Chuncrigar Road, Karachi 74000, Pakistan Te: 021-32464904 -8 Fax: 021-32464909 - 10 mall: ccmin@ocac.org pk Website: htps//wwwocac.org.pk/