Oil Marketing Companies (OMCs) have once again raised red flags over persistent challenges in the petroleum sector, urging the government to act swiftly to address long-standing issues threatening supply chain stability and the financial viability of the industry.
In a letter sent to the federal government and the Oil and Gas Regulatory Authority (OGRA), Tariq Wazir Ali, Chairman of the Oil Marketing Association of Pakistan (OMAP), expressed frustration over the lack of progress despite repeated engagements. He stressed that unresolved matters—including pricing mechanisms, profit margins, taxation hurdles, and regulatory bottlenecks—continue to weigh heavily on sector performance, creating uncertainty for companies tasked with ensuring uninterrupted fuel availability.
Ali warned that without timely government intervention, the sustainability of nationwide fuel supplies could be jeopardised, particularly as economic hardship has made energy affordability a critical concern. “Companies have shown patience despite rising financial pressures. But under current policy uncertainties, operations cannot remain sustainable indefinitely. A fair and transparent regulatory framework is essential for serving both the government and consumers,” the letter noted.
Highlighting the industry’s contribution, Ali pointed out that OMCs have already invested significantly in Pakistan’s energy infrastructure—Rs81 billion in storage facilities, accounting for nearly half the country’s total capacity, and another Rs75 billion in retail networks and other assets. These investments, he said, have made the market more competitive and consumer-oriented.
The OMAP chairman urged regulators to acknowledge the limitations of outdated mechanisms and adopt collaborative approaches to stabilise the supply chain. He emphasised that OMCs are under dual pressure: maintaining reliable nationwide supply while struggling to stay profitable—an imbalance he described as “unsustainable in the long run.”
Responding to the concerns, an OGRA spokesperson clarified that while the authority addresses industry issues within its jurisdiction, many matters—such as pricing policies and taxation—fall under the federal government. Industry observers believe the petroleum sector’s predicament reflects broader governance challenges, warning that unless coordination improves, both OMC profitability and fuel supply reliability could be at risk.
