2 days ago
Oil marketers seek meeting with PM
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The Oil Marketing Association of Pakistan (OMAP) has written a letter to Prime Minister Shehbaz Sharif, seeking immediate intervention and a meeting to address the worsening challenges faced by the sector.
In the letter, OMAP Chairman Tariq Wazir Ali highlighted the deteriorating situation confronting new and emerging players in Pakistan's downstream petroleum sector. Despite investing over Rs150 billion, including Rs81 billion in storage infrastructure and Rs75 billion in retail development, emerging oil marketing companies (OMCs) continue to face systemic neglect, regulatory discrimination and unsustainable business conditions.
"Emerging OMCs have contributed over 648,000 metric tons of strategic storage capacity – nearly 50% of the national total – while also playing a vital role in job creation, FDI (foreign direct investment) inflows and access to energy in underserved regions," the letter stated. "Yet, we are consistently sidelined and unfairly targeted in policy and enforcement decisions."
They expressed concern over the conduct of the Oil and Gas Regulatory Authority (Ogra), noting "institutional bias and a regulatory environment that favours legacy players". "Appointments of individuals from large OMCs on top regulatory posts have led to conflict of interests and hindered fair competition."
OMAP identified several pressing challenges including repeated foreign exchange losses and delayed tax adjustments, unsustainably low margins, classification in the grey sector, blocking access to financing and imposition of penalties tied to logistical issues beyond OMCs' control.
"Emerging OMCs, with only 5% of the market share, are routinely blamed for sector-wide disruptions such as fuel shortages, smuggling and supply chain breakdowns," said Chairman Tariq Wazir Ali.
