OMAP urges govt to resolve issues facing smaller cos

LAHORE: The Oil Marketing Association of Pakistan (OMAP) has called on the federal government to urgently address the deepening financial crisis facing emerging and smaller oil marketing companies, warning that continued inaction could weaken competition and disrupt the country’s downstream petroleum sector.

In a letter to Federal Energy Minister Ali Pervaiz Malik, OMAP Chairman Tariq Wazir Ali said smaller OMCs are under severe strain due to stagnant marketing margins, delayed Price Differential Claims (PDCs), and losses from unilateral pricing decisions. He noted that around Rs 66.7 billion in PDCs remain unpaid, crippling working capital and hampering fuel imports amid rising global oil prices.

The OMAP demanded prompt release of the outstanding claims, revision of margins unchanged since 2023, and prior consultation before pricing formula changes. It warned that forcing smaller firms out of the market would hurt competition and investor confidence, while reaffirming its willingness to work with the Ministry of Energy and OGRA on reforms.

Copyright Business Recorder, 2026