LAHORE: The Oil Marketing Association of Pakistan (OMAP) has called on the Ministry of Petroleum to intervene regarding the Oil and Gas Regulatory Authority’s (Ogra) proposed revisions to oil marketing companies’ (OMCs) margins, which it deems insufficient for the industry’s sustainability.
OMAP Chairperson Tariq Wazir Ali expressed concern over the proposed margin increase, stating that it does not account for the rising operational costs, foreign exchange losses, and pending tax refunds faced by OMCs. He warned that the current margin structure threatens the sector’s financial viability and limits critical investments in infrastructure and safety.
OMAP urged Ogra to revise the margins in line with market realities, with established OMCs suggesting a minimum increase to Rs12.65 per litre. The current proposal of a Rs1.35 per litre increase, including Rs0.5 for digitization, was dismissed as insufficient and inadequate. Wazir Ali emphasized the need for a more realistic revision to ensure the sector’s survival and continued service delivery across Pakistan.
Story by Munawar Hasan
