ISLAMABAD: Pakistan’s leading oil refineries have asked the Oil and Gas Regulatory Authority (OGRA) to ensure that Oil Marketing Companies (OMCs) uphold their commitments to uplift locally produced petroleum products before importing deficit volumes.
In a joint letter addressed to OGRA Chairman Masroor Khan, the chief executive officers (CEOs) of five major refineries highlighted concerns over OMCs failing to lift agreed quantities of High-Speed Diesel (HSD) and Motor Gasoline (MOGAS), disrupting refinery operations.
The letter was signed by the CEOs of Attock Refinery Limited (ARL), National Refinery Limited (NRL), Pak-Arab Refinery Limited PARCO, Cnergyico PK Limited (CPL), and Pakistan Refinery Limited PRL), with copies sent to the Petroleum Division, DG Oil (MEPD), and Secretary General of Oil Companies Advisory Council for further deliberation.
The letter references OGRA’s earlier correspondence (dated February 20, 2025) following a meeting held on February 10, where refineries stressed the need for strict enforcement of Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules 2016. This rule mandates prioritization of local production before allowing imports.
The refineries asserted that they have contractual agreements with OMCs for supply and commercial arrangements. They emphasised that ensuring adherence to these agreements is the responsibility of the regulator, not the refineries. They called on OGRA to enforce existing rules and SOPs to maintain supply chain stability.
While refineries welcomed OGRA’s suggestion to introduce a “Take or Pay” clause in supply contracts to ensure product uplift, they insisted that such a clause should be mutually agreed upon by all stakeholders and monitored and enforced by OGRA.
To resolve the issue, the refineries urged OGRA to convene an urgent joint meeting with OMCs to finalize a universal binding clause that guarantees the uplift of local refinery products before permitting imports.
A senior official of the OGRA, on condition not to be named, said that a meeting between refineries and OMCs is likely to be held during the next week.
It is pertinent to mention that with growing concerns over refining capacity utilisation and supply chain disruptions, OGRA’s response to the refineries’ demand will be crucial in shaping Pakistan’s fuel supply strategy in the coming months.
