Key Takeaways
- Oil marketing companies urge OGRA to implement pending margin increase.
- Outstanding price claims amount to Rs. 66 billion, equivalent to five imported petrol cargoes.
- OCAC calls for immediate resolution of financial pressures and supply chain disruptions.
Oil marketing companies (OMCs) have formally requested the Oil and Gas Regulatory Authority (OGRA) to implement a long-awaited increase in their margins and settle outstanding price claims of Rs. 66 billion, according to the Oil Companies Advisory Council (OCAC).
The advisory council, in a letter to OGRA, highlighted that the claims have been pending since March 2026, with the outstanding amount equivalent to the cost of approximately five imported petrol cargoes. This financial burden has been exacerbated by regional tensions and supply chain disruptions, which have further strained the oil industry’s financial position.
OCAC emphasized that the oil industry should not be held responsible for supply chain disruptions resulting from its financial difficulties. The council has demanded immediate implementation of the OMC margin increase, stating that oil marketing companies are currently facing severe financial pressure.
The last increase in margins for oil marketing companies was in September 2023, with dealers’ margins being increased by Rs. 1.34 per liter in August 2026. However, the implementation of a Rs. 1.22 per liter increase in OMC margins remains pending. The advisory council has called for an urgent verification process and the release of outstanding payments.
In a statement, OCAC stated, 'The claims have remained pending since March 2026, with the outstanding amount equivalent to the cost of around five imported petrol cargoes. The verification process should be completed as soon as possible and the outstanding payments released.'
The advisory council has also requested a meeting with the OGRA chairman to discuss the matter and seek an early resolution of the outstanding issues. OCAC believes that immediate action is necessary to alleviate the financial strain on the oil marketing companies.
Regional tensions have created supply chain challenges, while the oil industry’s difficult financial position is adding to the challenges of managing supplies. OCAC has called for an immediate resolution of the pending price claims and OMC margin issue to ensure the stability and sustainability of the oil sector.
The situation highlights the ongoing financial pressures faced by the oil marketing companies and the need for swift action from OGRA to address these issues. The advisory council’s demands underscore the importance of resolving these matters to maintain the smooth functioning of the oil supply chain.
The claims have remained pending since March 2026, with the outstanding amount equivalent to the cost of around five imported petrol cargoes.
OCAC, Oil Companies Advisory Council
