LAHORE: The Oil Marketing Association of Pakistan (OMAP) has raised serious concerns over fuel supply stability, urging the government to take immediate policy action to address challenges posed by the current Price Differential Claims (PDC) mechanism.
In letters addressed to Ali Pervaiz Malik and the chairman of Oil and Gas Regulatory Authority (OGRA), OMAP Chairman Tariq Wazir Ali termed the situation in the downstream petroleum sector as “increasingly unsustainable.”
While acknowledging government efforts to maintain fuel price stability amid regional geopolitical tensions, OMAP highlighted that PDC levels have surged to around Rs78 per litre on petrol and Rs176 per litre on diesel. These elevated costs, the association warned, are severely squeezing margins and effectively reducing oil marketing companies (OMCs) to financial intermediaries.
OMAP further cautioned that frequent and unpredictable weekly price adjustments are disrupting financial planning and inventory management, particularly for smaller OMCs, many of which now face the risk of operational shutdown.
To mitigate the crisis, the association has proposed several measures, including establishing a centralised PDC management system through the State Bank of Pakistan, extending payment timelines, facilitating low-cost bank financing, and forming a joint government-industry committee to review and stabilise policy frameworks.
The association warned that without timely intervention, the current situation could undermine the country’s fuel supply chain and broader energy security.
