IHC Seeks Report on Indefinite Ban on New Oil Marketing Companies

The Islamabad High Court has requested a detailed report from the Oil and Gas Regulatory Authority regarding the indefinite suspension of new oil marketing companies, imposed in 2019 and allegedly still in effect for nearly seven years. Justice Arbab Muhammad Tahir heard a petition filed by Fuelex Petroleum Pvt Ltd challenging OGRA's denial of their OMC license application.

The company argued that Ogra should have assessed their application based on the criteria set by the Pakistan Oil Rules, 2016, instead of solely relying on the moratorium. The petition also questions a January 9, 2019 instruction which prevented local investors from submitting new applications until revised criteria were approved.

Despite over seven years passing, the revised criteria have not been approved, leading to an indefinite moratorium on new OMCs owned by local investors. The company cited Ogra's 2024-25 Annual Report, which noted the entry of new OMCs during the moratorium period. During the hearing, the petitioner's counsel argued that the 2019 direction could not remain in force indefinitely, as it was tied to the approval of revised licensing criteria.

The counsel also challenged the direction's legality under the Ogra Ordinance 2002 and the Pakistan Oil Rules, 2016, asserting that the authority to grant licenses lies with Ogra and that the licensing process must adhere to the regulatory framework. The court acknowledged the petitioner's concerns and ordered the respondents to submit comprehensive reports and paragraph-by-paragraph comments by the next hearing on October 8.