OMCs urge OGRA to release PKR 66.7 billion in outstanding claims

Pakistan's oil marketing companies have urged the Oil and Gas Regulatory Authority (OGRA) to release about PKR 66.7 billion in outstanding price differential claims and immediately implement an approved increase in their margins, warning that prolonged delays are putting the industry's liquidity and fuel supply chain under pressure.

The Oil Companies Advisory Council (OCAC), representing oil marketing companies (OMCs), raised the issues in a letter to OGRA's chairman dated September 17, signed by Syed Nazir Abbas Zaidi, secretary general of the council.

"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 said in the letter.

He said the claims remained unresolved despite verification and audit processes introduced after the reimbursement mechanism was finalized. OCAC had sought settlement of the claims by June 8, but the matter remains pending, he said.

Zaidi urged OGRA to complete verification of the claims and release all amounts that have been verified and approved, including premium differential claims related to motor gasoline imports during the recent geopolitical crisis.

OMC margins unchanged since 2023

The council also called for immediate implementation of a PKR 1.22 per liter increase in OMC margins that has been approved but has not yet been 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 PKR 1.34 per liter in August 2026, while the approved increase in OMC margins remained pending.

Unlike dealers, oil marketing companies are responsible for fuel procurement, import financing, inventory management, logistics and ensuring product availability across the country, in addition to meeting regulatory and digitization requirements, Zaidi said.

"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.

Industry warns of liquidity pressures

OCAC said oil marketing companies were facing severe financial pressure and urged the regulator to address the pending claims and margin issue on an urgent basis.

Zaidi said OMCs had consistently supported the government when fuel security and uninterrupted supplies were at stake, but the industry was now facing an acute liquidity crisis. He also cited 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.

OCAC requested an urgent meeting with OGRA's chairman and senior leadership of its member companies to resolve the outstanding claims and margin revision issues. The council said it had previously raised the matters with OGRA and received assurances regarding their early resolution, but said no corresponding resolution had been reached.

Zaidi also invited the OGRA chairman to meet the senior leadership of member companies at the OCAC office in Karachi early next week to discuss the industry's financial position and measures needed to maintain an uninterrupted fuel supply.