Karachi: Oil Marketing Companies (OMCs) have fallen short of petroleum uplift commitments from local refineries, despite repeated directives from the Oil and Gas Regulatory Authority (OGRA), according to industry sources.
The shortfall relates to commitments made during the Product Review Meeting (PRM) for May, with supply data indicating that upliftment of petrol and high-speed diesel (HSD) remained below prorated targets in the first half of May 2026.
Official figures up to May 17 show motor spirit (petrol) upliftment at 330,181 metric tonnes against a target of 357,274 tonnes, reflecting a shortfall of 25,146 tonnes or 8 percent. High-speed diesel performance was weaker, with upliftment of 281,092 tonnes against a requirement of 366,981 tonnes, leaving a deficit of 83,174 tonnes or 23 percent.
Industry data further shows persistent refinery-wise supply gaps. In April 2026, the Attock Refinery Limited supplied 43,861 tonnes of petrol against an allocation of 53,300 tonnes, while the Pakistan Refinery Limited remained 16 percent below its assigned volumes. Cnergyico recorded the steepest decline, with supplies 44 percent lower than allocated levels.
In contrast, the National Refinery Limited and Pak-Arab Refinery Limited slightly exceeded petrol supply allocations by 3 percent and 4 percent respectively.
For diesel in April, all major refineries remained below target, with PARCO recording the largest shortfall of over 51,000 tonnes, while ARL and CPL each posted declines of around 26 percent.
The downward trend continued in early May (May 1–10), with ARL’s petrol supplies 30 percent below allocation and NRL 28 percent short, while PARCO recorded a 9 percent deficit. In diesel supplies, Cnergyico saw the sharpest drop, supplying 18,596 tonnes against an allocation of 34,903 tonnes, a 47 percent shortfall.
Sources said that OGRA had recently warned that continued failure to meet uplift commitments could lead to regulatory action under applicable laws, including restrictions on future imports.
Industry stakeholders attributed the situation to unresolved price differential claims (PDCs), which they say are affecting OMC cash flows and procurement capacity. Meanwhile, refineries are reportedly facing rising inventory levels and storage constraints due to subdued upliftment. They also noted that even the Pakistan State Oil has not been fully complying with uplift commitments.
Story by Tanveer Malik
