KARACHI: The Oil and Gas Regulatory Authority (Ogra) has prepared draft Product Review Meeting (PRM) Regulations under the Oil Rules 2016, introducing take-or-pay (TOP) agreements and mandatory compliance for refineries, oil marketing companies (OMCs), and importers to ensure smoother petroleum supply operations.
The proposed framework outlines mechanisms for demand-supply analysis, import quota adjustments, and enforcement through penalties. It was presented to a government committee chaired by the petroleum minister, which agreed in principle and directed Ogra to finalise the rules in consultation with stakeholders ahead of the next meeting.
The move comes after disputes between refineries, OMCs, and the regulator over high-speed diesel (HSD) imports, with refineries reporting losses due to low offtake. Under the draft rules, monthly PRM meetings would be held on the second Thursday and Friday of each month, backed by a fixed calendar to ensure full participation. A monthly variance report comparing PRM decisions with actual performance will be sent to the Petroleum and Cabinet Division secretaries.
The committee also discussed inter-OMC sales, assigning former PSO MD Imranul Haq to work with the Ogra chairperson on a detailed review. End-to-end digitisation of the supply chain was emphasised to curb fuel smuggling.
Ogra also proposed extending the benefit of deemed duty proportionately to other regulated fuels — without affecting consumer prices or reducing refinery benefits — to encourage a balanced output mix. The proposal will be reviewed by Ogra, the DG (Oil), FBR, and Haq, ensuring alignment with refining policies and customs duty structures. A consensus plan is expected at the next meeting to remove incentives favouring diesel production over petrol, jet fuel, and other products.
Story by Tanveer Malik
