OMAP seeks PM’s intervention to help resolve issues facing petroleum industry

LAHORE: The Oil Marketing Association of Pakistan (OMAP) has sounded the alarm on the country’s petroleum industry, seeking Prime Minister Shehbaz Sharif’s immediate intervention to address pressing challenges and ensure its viability.

The Oil Marketing Association of Pakistan (OMAP) has urged Prime Minister Shehbaz Sharif to address pressing issues faced by the petroleum industry.

In a letter dated September 5, 2024, OMAP Chairman Tariq Wazir Ali highlighted the following challenge which includes Zero-Rated Sales Tax. Reduction to 0% has resulted in Rs 65 billion worth of held funds, severely impacting oil marketing companies’ (OMCs) cash flows.

PM, OMAP official discuss key issues of oil marketing companies

The other issues included Delayed Sales Tax Refund. Pending refunds pose an existential threat to emerging OMCs.

Tariq Wazir Ali said decision on proposed revision remains pending, affecting OMCs’ operational costs. He demanded recovery of foreign exchange losses. Outstanding amounts owed to OMCs have reached billions, threatening their financial health.

He also pointed out issue smuggling of Iranian Petroleum Products. He said illegal import of Hydrocarbon Solvent used in adulterating gasoline, leading to industry and government revenue losses.

Ali requested the Prime Minister’s immediate attention to these issues, citing their impact on the industry’s operational efficiency and growth prospects.

The OMAP chairman also sought a meeting with the Prime Minister to discuss these challenges and propose solutions.

Copyright Business Recorder, 2024