ISLAMABAD: In a significant enforcement move, the Oil and Gas Regulatory Authority (OGRA) has imposed hefty penalties on 20 Oil Marketing Companies (OMCs) for failing to maintain the mandatory 20-day stock cover of petroleum products and for inadequate upliftment of indigenous fuel from local refineries.
The total penalties imposed exceed Rs 400 million, with individual fines ranging between Rs 6 million to Rs 37.5 million. The punitive action follows months of monitoring and repeated directives issued through Product Review Meetings (PRMs) to ensure inventory compliance and support local refineries.
According to official documents available with this correspondent, the penalties were imposed following the companies’ repeated non-compliance with directives issued by OGRA and the federal government. These directions, conveyed through written communications and Product Review Meetings (PRMs), emphasized the importance of ensuring sufficient petroleum reserves and supporting the indigenous refining sector by lifting allocated volumes of refined oil products.
The regulator took notice of the violations after reviewing the performance of the OMCs during March 2025. A detailed examination revealed that the companies had failed to comply with the stock cover obligations prescribed under Rule 30-A of the Pakistan Petroleum (Refining, Blending and Marketing) Rules, 1971, as well as conditions outlined in their marketing licenses and relevant Government of Pakistan (GoP) policies.
Subsequently, OGRA issued formal Show Cause Notices to the Chief Executives and Managing Directors of the defaulting OMCs on April 24, 2025. The notices were served to companies including Petro Pakistan Pvt Ltd, Khyber Petroleum (Pvt.) Limited, Benzin Petroleum Pvt Limited, Taj Gasoline Pvt. Ltd, Horizon Oil Company (Pvt) Ltd, Oil Industries Pakistan (Pvt) Ltd, Fast Oil Pvt. Ltd, Zoom Marketing Oils (Pvt) Ltd, Vital Petroleum Pvt Limited, Flow Petroleum (Pvt) Ltd, My Petroleum Pvt. Limited, Allied Petroleum Pvt. Ltd, Euro Oil Pvt. Limited, Al-HAMMDALI International Trade Co. Pvt. Ltd, Al-Noor Petroleum Pvt. Ltd, Lucky Petroleum (Pvt) Limited, Askar Oil Private Ltd, Be Energy Ltd, OTO Pakistan Private Limited, and Jinn Petroleum Pvt. Ltd.
The notices reminded the companies of their legal and regulatory obligations under the OGRA Ordinance, 2002 and the Pakistan (Refining, Blending, Storage, Transportation and Marketing) Oil Rules, 2016. Each company was directed to submit an explanation within 15 days, failing which OGRA warned it would initiate ex-parte proceedings and take stern action under applicable laws.
Upon examination of the replies submitted by the OMCs, OGRA concluded that the responses were unsatisfactory. The regulator found the companies in violation of their licensing conditions, government policies, and repeated directions of the Authority. Consequently, on May 30, 2025, OGRA exercised its powers under Rule 69 of the 2016 Rules and imposed monetary penalties ranging from Rs6 million to Rs37.5 million per company, depending on the severity of non-compliance.
The largest penalties were imposed on Al-HAMMDALI International Trade Co. Pvt. Ltd and Khyber Petroleum (Pvt.) Limited, each fined Rs37.5 million. Other companies receiving substantial penalties include Lucky Petroleum (Pvt) Limited and Petro Pakistan Pvt Ltd with fines of Rs35 million each, OTO Pakistan Private Limited with Rs30 million, Fast Oil Pvt. Ltd and Askar Oil Private Ltd with Rs27.5 million each, and Euro Oil Pvt. Limited fined Rs26 million. Several other companies were fined between Rs6 million and Rs23.5 million for similar violations.
OGRA reiterated that the failure to maintain the required 20-day petroleum stock and to uplift local refined products not only breaches regulatory obligations but also threatens national energy security. Ensuring consistent upliftment from local refineries is essential to the stability and sustainability of Pakistan’s fuel supply chain.
The penalized companies have been directed to deposit the penalty amounts within ten days of the issuance of the imposition orders. OGRA has warned that failure to comply with this directive could lead to harsher consequences, including the suspension or outright revocation of marketing licenses.
This action underscores OGRA’s firm stance on regulatory enforcement and its commitment to upholding energy security by ensuring compliance across the downstream petroleum sector. It also sends a clear message to all market participants about the seriousness of stock maintenance and support for local refineries as a national obligation.
