LAHORE: Pakistan’s emerging oil marketing companies (OMCs) have raised strong objections over what they describe as unfair regulatory practices and unequal treatment compared to larger, more established players in the petroleum sector.
In a letter addressed to Petroleum Minister Ali Pervaiz Malik, the Oil Marketing Association of Pakistan (OMAP) outlined the challenges faced by new entrants, despite their substantial investments and growing contributions to the national petroleum landscape.
According to OMAP, emerging OMCs have collectively invested Rs150 billion in the sector — Rs81 billion in storage infrastructure, representing nearly 50% of the country’s total storage capacity, and Rs75 billion in retail outlets and operational facilities. An additional Rs70 billion is currently being invested in ongoing projects.
The letter emphasized that these companies have played a critical role in ensuring uninterrupted fuel supply to remote and underserved regions, contributed significantly in taxes, and generated thousands of jobs. Yet, they currently hold only a 5% market share, despite operating over 3,200 retail outlets and having infrastructure comparable to major players.
OMAP expressed concern that while regulations are ostensibly designed to foster competition, they are not being implemented equitably. A key issue raised was the rigid enforcement of the rule requiring all OMCs to maintain a minimum 20-day stock cover, which they argue should be applied with flexibility based on each company’s scale and financial capacity.
The association lamented that the Oil and Gas Regulatory Authority (Ogra) has shown little willingness to accommodate these realities, thereby disadvantaging emerging firms and undermining a level playing field in the petroleum sector.
