Key Takeaways
- The Oil Companies Advisory Council (OCAC) has demanded the immediate release of Rs66.7 billion in pending Price Differential Claims (PDCs).
- This move is aimed at ensuring uninterrupted supply of petroleum products amid concerns over localised shortages.
- Delays in customs clearance and non-payment of PDC claims are exacerbating liquidity constraints for Oil Marketing Companies.
The Oil Companies Advisory Council (OCAC) has issued a stern warning to the government, urging immediate release of Rs66.7 billion in pending Price Differential Claims (PDCs) to prevent potential shortages of petroleum products across Pakistan.
In a letter addressed to Minister for Petroleum and Natural Resources, Ali Pervaiz Malik, OCAC Chairman Asif Iqbal highlighted the critical situation, stating that failure to act could lead to localised fuel shortages in the coming days. The current supply position is described as extremely tight, with only around 370,000 tonnes of Motor Spirit (MS) stock available nationwide—equivalent to approximately 15 days of cover.
A significant portion of this stock remains unavailable for sale due to bottlenecks in the customs clearance process. Three MS import cargoes are scheduled to arrive between July 15 and 17, including one cargo vessel, MT Bolan, which berthed at FOTCO on Wednesday. However, delays in the WEBOC customs clearance system could hinder the timely release of these imported products, particularly affecting upcountry markets.
The situation has been further complicated by a planned MS import cargo from Pakistan State Oil (PSO) that was not approved by the National Coordination and Management Council (NCMC) in June 2026. This disruption is expected to impact inventory replenishment plans. Additionally, increased market activity amid reports of rising international petroleum prices has placed additional strain on already constrained inventories.
The OCAC emphasized that the crisis is being compounded by severe liquidity constraints faced by Oil Marketing Companies (OMCs) due to continued non-payment of Rs66.7 billion in pending PDC claims. The prolonged delay in disbursement has significantly impaired the industry’s ability to finance imports and maintain adequate stock levels.
“With international petroleum prices expected to rise, working capital requirements will increase substantially,” stated Asif Iqbal. “The continued non-payment of PDC claims, combined with higher import costs, is placing an unsustainable financial burden on OMCs.”
While supporting consumer relief measures, the OCAC stressed that any such initiatives should be funded by the government rather than imposed on the industry.
In light of the situation, the OCAC has sought urgent intervention from the Petroleum Minister to facilitate immediate release of the outstanding Rs66.7 billion in PDC claims and direct relevant authorities to expedite customs clearance processes.
Under the prevailing circumstances, any further delays in customs clearance could materially impact product availability and increase the likelihood of localised shortages, especially in upcountry locations.
Asif Iqbal, OCAC Chairman
