OMCs demand immediate increase in margin
ISLAMABAD: Pakistan’s top oil marketing companies (OMCs) have sought urgent government intervention for notification of the long-pending Rs1.22 per litre increase in their regulated margin, warning that the industry cannot indefinitely absorb mounting financial and regulatory costs. In a letter dated August 18, 2026, addressed to Federal Minister for Energy (Petroleum Division) Ali Pervaiz Malik,…
Pakistan's leading oil marketing companies (OMCs) have urgently requested government action to implement a long-delayed margin increase, warning that the sector cannot sustain the mounting financial and regulatory pressures. In a letter to Federal Minister for Energy Ali Pervaiz Malik, dated August 18, 2026, the Oil Companies Advisory Council (OCAC) stated that the OMC margin has remained unchanged since September 2023, despite three full fiscal years and the onset of FY27.
The council emphasized that the industry has supported government policies, including the recently introduced daily petroleum pricing mechanism and maintaining fuel supplies during global turmoil, while operating on a regulated 2 percent gross margin. The dispute centers around an ECC-approved Rs1.22 per litre increase in the OMC margin, based on national CPI for FY24 and FY25, which has yet to be implemented.
OCAC described the existing margin of Rs7.87 per litre as "grossly inadequate" for the sector's deteriorating business economics and growing financial strain. The council also emphasized that the approved margin increase should not be contingent on the completion of the industry's digitisation programme, which has already been submitted for a three-year implementation plan.
Outstanding Price Differential Claims (PDCs) and GST/input-tax reimbursements further exacerbate the liquidity crunch, putting severe pressure on OMCs' commercial viability. OCAC warned that weakened OMC finances could impact investment in Pakistan's downstream petroleum sector, risking investor confidence at a time when the country needs increased domestic and foreign capital.
The council demanded immediate notification and implementation of the pending margin increase, determination of overdue margins for FY26 and FY27, and establishment of a sustainable regulatory framework to support investment and financial viability. OCAC also sought an urgent meeting with the minister and industry representatives to avert "serious and potentially irreversible damage" to the sector.
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