Pakistan’s oil marketing companies have formally pressed the Oil and Gas Regulatory Authority (OGRA) to immediately implement a pending margin increase and clear a mounting backlog of financial claims, warning that continued delays are straining the sector’s ability to maintain smooth fuel supply across the country.
The Oil Companies Advisory Council (OCAC), the collective body representing Pakistan’s major oil marketing companies (OMCs), has asked the regulator to release Rs. 1.22 per litre in pending margin adjustments — an increase that has been under review since the OMCs’ last rate hike all the way back in 2023. The council has also demanded settlement of Rs. 66 billion in outstanding price verification claims, an amount roughly equivalent to five full imported petrol cargoes, that have remained pending since March 2026.
Why the Oil Marketing Companies Are Under Pressure
The OCAC OGRA oil margins dispute comes at a time when the broader energy sector is already navigating regional supply chain disruptions. OCAC has argued that the oil industry should not be held responsible for supply interruptions that stem directly from its own financial difficulties, pointing to the three-year gap since margins were last revised as evidence of the mounting pressure.
Notably, fuel dealers were granted a Rs. 1.34 per litre margin increase back in August 2026, a move that has widened the gap between what dealers and OMCs earn per litre sold and added urgency to the companies’ appeal. Without a matching adjustment, OMCs argue their operating margins are being squeezed even as compliance and supply obligations remain unchanged.
What OCAC Is Asking OGRA to Do
In its formal appeal, the advisory council has outlined a clear set of demands: immediate implementation of the Rs. 1.22 per litre margin increase, prompt settlement of the Rs. 66 billion in outstanding claims, and an expedited verification process to prevent further backlogs from accumulating. OCAC has also requested a direct meeting with the OGRA chairman to resolve outstanding matters that it says have lingered without adequate response.
The council’s letter frames the request as necessary for maintaining stable fuel availability nationwide, cautioning that continued financial strain on OMCs could eventually translate into supply-side complications if left unaddressed. Energy sector analysts note that verification delays of this scale are not new, but the scale of the current backlog — nearly five cargo shipments’ worth of unpaid claims — is unusually large.
OGRA has not yet issued a public response to the council’s latest appeal. The regulator’s next move will be closely watched by fuel retailers and consumers alike, given that any further increase in OMC margins would eventually factor into retail pump prices. The dispute echoes broader tension in Pakistan’s energy sector, where private power producers charging far more than state-run hydel plants has similarly drawn scrutiny over pricing structures across the energy chain.