KARACHI: The Oil and Gas Regulatory Authority (Ogra) has directed oil marketing companies (OMCs) to submit complete data and supporting documentation related to price differential claims (PDCs) within 10 days to facilitate timely reimbursement and improve transparency in the settlement process.
In a circular issued to OMCs operating across the country, the regulator stated that expeditious settlement of PDCs requires evidence-based scrutiny and verification. Ogra stressed that companies must comply with the prescribed mechanism in both letter and spirit and ensure that all claims are submitted with the required supporting documents without delay.
The authority noted that such records should already be readily available with OMCs as responsible corporate entities maintaining systematic and transparent documentation supported by adequate internal controls.
According to the circular, all required information and data — in both hard and soft copies — must be provided within 10 days from the date of issuance of the directive.
The move comes amid growing concerns within the oil industry over delays in PDC reimbursements, with OMCs warning that prolonged processing times are creating liquidity pressures and threatening supply chain stability.
Industry representatives said delays in payments, particularly under the existing tranche-based reimbursement structure, are worsening working capital constraints and could affect critical operations such as fuel imports and the opening of letters of credit (LCs), potentially disrupting the supply of petroleum products in an already volatile global market.
OMCs also expressed reservations over revised documentation requirements introduced by Ogra on April 16, describing them as extensive and time-consuming. According to industry participants, the additional requirements could delay reimbursements beyond the previously targeted two-day processing timeline.
The sector further highlighted challenges including low regulated margins, accumulation of non-adjustable sales tax, and continued exposure to exemptions on petroleum products. Companies also cited rising compliance and digitisation costs, along with higher financing expenses following the increase in the policy rate to 11.5 per cent.
Frequent and selective audits were also identified as adding to the financial burden on the industry.
Calling for reforms, the oil sector urged the regulator to introduce a simpler and time-bound reimbursement mechanism to maintain financial stability and ensure uninterrupted fuel supplies nationwide. Industry participants also requested the immediate release of pending PDC payments to ease liquidity pressures.
Additionally, the sector proposed that only 10 per cent of claims be retained for final settlement, with the remaining amount released promptly after reconciliation of sales tax returns and petroleum levy receipts.
