ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has moved to impose strict penalties and potential licence suspensions on Oil Marketing Companies (OMCs) and refineries for failing to maintain the mandatory 20-day oil stock cover and for not lifting or producing petroleum products as per commitments made in Product Review Meetings (PRMs).
In an official communication to leading OMCs, OGRA expressed concern that several companies are violating their agreed-upon obligations by not lifting stocks from local refineries, undermining energy security and leading to financial losses due to increased reliance on imports. OGRA warned that such actions directly violate regulatory directives.
During its meeting on May 29, 2025, OGRA reviewed serious breaches in stock management and product lifting. Under Rule 69 of the Pakistan Oil Rules, 2016, it approved immediate penalties for violators. OMCs that failed to maintain the required stock levels in March 2025 will be penalized as follows:
- Less than 5 days of stock: Rs10 million
- 5 to less than 10 days: Rs7.5 million
- 10 to less than 15 days: Rs5 million
- 15 to less than 20 days: Rs1 million
OMCs also face fines for failing to lift allocated products from refineries:
- 10–25% shortfall: Rs1 million
- 25–50% shortfall: Rs5 million
- 50–75% shortfall: Rs7.5 million
- Over 75% shortfall: Rs10 million
Refineries producing less than the committed volume for three consecutive months will also be subject to penalties and possible suspension of their marketing licences.
For April 2025, OGRA directed issuance of show-cause notices to violators by May 30, with seven working days allowed for responses. Notices for May 2025 are scheduled for issuance by June 20.
Looking ahead, OGRA warned that any OMC or refinery continuing to violate PRM commitments may face suspension of marketing licences. The authority has also instructed finalization of the draft Petroleum Products Review Meeting Regulations, 2025, which will be circulated to stakeholders for feedback within seven working days.
Story by Zafar Bhutta
