KARACHI: The Oil and Gas Regulatory Authority (OGRA) has directed oil marketing companies (OMCs) to ensure timely uplift of petroleum products from local refineries, warning that delays could disrupt refinery operations and create fuel supply risks across the country.
In an official communication, the regulator stressed that domestic refineries remain a vital component of Pakistan’s National Oil Supply Chain (NOSC), meeting nearly 70% of diesel demand and around 30% of petrol requirements.
OGRA instructed all OMCs to adhere strictly to their allocated lifting schedules to ensure refineries operate at optimal capacity and to prevent unnecessary accumulation of petroleum inventories.
The regulator cautioned that failure to comply with uplift commitments may result in regulatory action under applicable laws, including potential restrictions on future import approvals.
Industry sources said oil marketing companies have reportedly not been meeting Product Review Meeting (PRM) commitments since April, even as refineries continue production and face growing inventory pressures and storage constraints.
They added that the situation is creating cash flow challenges for refineries due to unsold stocks building up at production sites.
Oil marketing companies, however, argue that outstanding Price Differential Claims (PDCs) have impacted their liquidity and limited their ability to fully honour procurement commitments. Sources also indicated that Pakistan State Oil has not been fully complying with its uplift obligations.
Meanwhile, policymakers continue to emphasise strengthening domestic refining capacity and improving supply chain efficiency as Pakistan navigates evolving regional energy dynamics and efforts to reduce dependence on imported fuels.
Story by Tanveer Malik
