ISLAMABAD: The Oil Marketing Association of Pakistan (OMAP) has expressed serious concern over what it termed as the Oil and Gas Regulatory Authority’s (OGRA) “undue pressure” on deregulated petroleum products, particularly solvents, saying such actions fall outside OGRA’s legal jurisdiction.
In a letter addressed to OGRA Chairman Masroor Khan, OMAP Chairman Tariq Wazir Ali stated that OGRA has been repeatedly asking Oil Marketing Companies (OMCs) to provide information and customer-level data on deregulated products — a move the association said is both unnecessary and legally questionable.
OMAP clarified that OGRA’s authority is limited to regulated petroleum products such as motor gasoline and high-speed diesel, which include licensing, pricing, and enforcement within the regulated domain.
“Solvents and related by-products are treated as free-market goods, not subject to OGRA’s price control or licensing,” the letter said. “Repeated demands for confidential business or customer data in respect of non-regulated solvent products lie outside OGRA’s regulatory functions. Such demands resemble tax/ audit requests rather than legitimate regulatory oversight.”
The association warned that such actions were creating confusion and fear among small traders and distributors, discouraging refineries from producing solvent-based by-products that are fully legal and taxed, and potentially undermining efforts to promote transparent local trade over illegal imports.
OMAP stressed that no refinery or OMC is involved in tax evasion or product adulteration, adding that all products are sold in accordance with specifications and all applicable taxes are paid. However, it warned that forcing companies to disclose detailed client information could damage business confidence and disrupt legitimate operations.
The letter urged OGRA to:
- Refrain from pressuring OMCs over deregulated products;
- Stop demanding customer data on non-regulated items;
- Align its actions with the government’s “Ease of Doing Business” policy; and
- Focus on core regulatory functions within its statutory domain.
OMAP noted that the solvent trade, though small, is a vital sector supporting refineries, OMCs, and small industries while contributing to national revenue. “Rather than discouraging this legal business, OGRA should facilitate it and help remove genuine policy bottlenecks,” the statement concluded.
