Pakistan’s oil industry has rejected the Oil & Gas Regulatory Authority’s newly imposed 6–12 month deadlines for full digital integration of more than 32,000 ground tanks, depots and petrol pumps, warning that the plan cannot be implemented without a clear mechanism for recovering the estimated Rs55 billion cost, Dawn reported.
In a formal letter to Ogra and the Petroleum Division, the Oil Companies’ Advisory Council, representing over three dozen oil firms and refineries, said the regulator’s instructions were issued unilaterally and without allowing companies to present technical or financial constraints. The Oil Marketing Association of Pakistan, the body representing smaller operators, also lodged a protest.
Industry representatives said an Ogra team led by Chairman Masroor Khan told chief executives of OMCs that they must digitise 600 installations by January 31, 2026 and the rest by January 31, 2027, with 16,000 retail pumps required to be integrated by June 2026. Under the Auto Tank Gauging system, all sites must be linked to a central dashboard for real-time monitoring of every litre of fuel.
Executives present at the meeting said they were not permitted to explain operational hurdles. One participant quoted the chairman as saying that digital integration “is the vision of the prime minister, and you have to comply with the given deadlines … those failing will face punitive action.”
Soon after, OCAC and OMAP held an emergency meeting with Petroleum Minister Ali Pervaiz Malik, who asked the regulator to address industry concerns while moving ahead with the broader reform process.
Industry officials said companies support digital integration but stressed that the required infrastructure is not available off the shelf, and designing and installing ATG hardware across the country would cost Rs55–60 billion. They said firms were already paying significant sums for regulatory compliance, including the PITB-led Track & Trace System, which industry members say has produced “no update, no completion timeline, and no demonstrable outcome.”
In its written protest, OCAC said the meeting with Ogra proceeded largely as a monologue and noted that repeated requests to present the industry’s position were ignored. It reiterated that a phased, multi-year implementation plan was essential, pointing out that each ATG unit is custom-built according to specific tank configurations and requires substantial lead time for procurement, installation, integration, and calibration.
The council also highlighted that OMC margins have remained unchanged for two years, leaving companies unable to absorb new capital costs of this scale. Industry executives said the regulator’s “threatening stance” was unacceptable, adding that without cost recovery “do they want us to go bankrupt?”
