ISLAMABAD: Pakistan’s leading oil refineries have jointly raised serious concerns over insufficient product upliftment by Oil Marketing Companies (OMCs) and urged the Oil & Gas Regulatory Authority (OGRA) to proactively enforce binding supply obligations to safeguard local production and national energy security.
In a strongly worded letter addressed to OGRA Chairman Masroor Khan, the Chief Executive Officers of Attock Refinery Limited (ARL), Cnergyico PK Limited, National Refinery Limited (NRL), Pakistan Refinery Limited (PRL), and Pak-Arab Refinery Limited (PARCO) expressed disappointment over the contents of OGRA’s March 13, 2025 letter, which they claim contradicts the mutual understanding reached during a refineries meeting held in Karachi on March 3, 2025.
The refineries highlighted that repeated failures by OMCs to uplift committed quantities of high-speed diesel (HSD) and motor gasoline (MOGAS) have led to supply disruptions, undermining the viability of local refineries. They pointed to Rule 35(g) of the OGRA Rules 2016, which mandates OMCs to prioritize local product before resorting to imports, and emphasized that enforcement of this rule lies with OGRA.
The refineries criticized OGRA’s explanation regarding the criteria for determining insufficiency in local production prior to approving fuel imports, calling it “misconceived and misleading.” They warned that allowing imports when domestic products remain unsold not only wastes precious foreign exchange but also increases consumer prices due to higher Inland Freight Equalization Margin (IFEM).
Refineries already have binding contractual agreements with OMCs for product supply. OGRA must ensure that these agreements are honored and local production is uplifted before any imports are approved, the letter stated.
While acknowledging OGRA’s initiative to include a “Take or Pay” clause in supply contracts, the refineries clarified that such contractual modifications require consensus among all stakeholders and a clear implementation framework backed by regulatory enforcement.
Declaring the refineries as strategic national assets, the CEOs stressed that over-reliance on imported fuels without fully utilizing domestic refining capacity exposes the country to energy insecurity and economic instability, especially during ongoing financial challenges.
All five refineries are in full compliance with the OGRA Ordinance 2002 and its rules, regulations, and technical standards, the joint letter affirmed.
The refineries urged OGRA to take a proactive and decisive role in resolving the ongoing product upliftment issues, warning that the continuity and sustainability of local refineries is essential for Pakistan’s energy and defense security.
The letter was also forwarded to the Secretary of the Petroleum Division, Director General Oil (Ministry of Energy – Petroleum Division), and Secretary General of Oil Companies Advisory Council (OCAC).
