KARACHI: Pakistan's oil marketing companies have urged the Oil and Gas Regulatory Authority to release about 66.7 billion rupees in outstanding price differential claims and immediately implement an approved increase in their margins, warning that prolonged delays are straining the industry's liquidity and fuel supply chain.
The Oil Companies Advisory Council, which represents the country's oil marketing companies, raised the concerns in a letter to OGRA's chairman dated Sept. 17. The letter was signed by Syed Nazir Abbas Zaidi, the council's secretary general.
"Approximately PKR 66.7 billion in PDCs, broadly equivalent to five Mogas cargoes, remains outstanding with OGRA, with a significant portion pending since March 2026," Zaidi wrote.
He said the claims have remained unresolved despite verification and audit processes introduced after the reimbursement mechanism was finalized. The council had sought settlement of the claims by June 8, but the matter remains pending, he said.
Zaidi called on OGRA to complete verification of the claims and release all amounts that have already been verified and approved, including premium differential claims tied to motor gasoline imports during a recent geopolitical crisis.
The council also urged immediate implementation of a 1.22 rupee per liter increase in oil marketing company margins that has been approved but not yet formally notified.
"OMC margins were last revised in September 2023 and have remained unchanged despite significant increases in operating, financing, technology, regulatory and compliance costs," Zaidi said.
He noted that dealer margins were increased by 1.34 rupees per liter in August, while the approved increase in oil marketing company margins has remained pending.
Zaidi said that unlike dealers, oil marketing companies are responsible for fuel procurement, import financing, inventory management, logistics and ensuring product availability nationwide, in addition to meeting regulatory and digitization requirements.
"We therefore request OGRA to immediately notify and implement the PKR 1.22/litre OMC margin increase and establish a predictable mechanism for periodic margin revision," he said.
The council said oil marketing companies are facing severe financial pressure and urged the regulator to address the pending claims and margin issue urgently.
Zaidi said the companies have consistently supported the government when fuel security and uninterrupted supplies were at stake, but the industry is now facing an acute liquidity crisis. He also pointed to the evolving geopolitical situation and potential disruptions to regional supply routes, including the East-West Pipeline, as additional risks to the fuel supply chain.
"At a time when the country may face significant supply-side challenges, and if the industry's liquidity continues to be depleted due to no support from the authorities, any resulting supply-chain disruption must not be on account of the Oil Industry," Zaidi said.
The council requested an urgent meeting with OGRA's chairman and senior leadership from its member companies to resolve the outstanding claims and margin revision issues. It said it had previously raised the matters with OGRA and received assurances of early resolution, but no corresponding action had followed.
Zaidi invited the OGRA chairman to meet with senior leadership of member companies at the council's Karachi office early next week to discuss the industry's financial position and steps needed to maintain an uninterrupted fuel supply.
