Oil industry urges review of mandatory EV charger rules at fuel stations

The Oil Companies Advisory Council (OCAC) has asked the government to reconsider mandatory electric vehicle charging requirements at petroleum retail outlets, citing operational and financial challenges faced by oil marketing companies.

In a letter addressed to Petroleum Minister Ali Pervaiz Malik, the council proposed removing the requirement linking the issuance of K-Forms to the availability of EV charging infrastructure and called for a review of rules that require EV chargers to be installed before approval of new fuel station layouts.

OCAC said the industry supports the government’s long-term goals of promoting cleaner energy and expanding the use of new energy vehicles. However, it noted that oil marketing companies were not involved during the policy formulation stage despite being expected to implement charging infrastructure at fuel stations.

According to the council, the New Energy Vehicles policy was initiated by the Ministry of Climate Change and envisages EV charging facilities at several locations, including petrol retail outlets.

Officials said a special electricity tariff of Rs38.9 per unit has been approved for EV charging stations, while discussions on customs duties and fiscal incentives for EV vehicles are expected to be finalised in the fiscal year 2026.

OCAC said the policy target of achieving 10% EV charging availability at retail outlets by 2030 does not reflect current market conditions. As of November 2025, only around 2,700 to 3,000 electric vehicles were operating in the country, compared with the projected target of 125,000 vehicles.

The council said installing a Level-3 charging station requires an investment of around Rs15 million to Rs20 million, excluding additional costs for transformers and cabling required for high-capacity grid connectivity and backup power systems.

At present, oil marketing companies have installed about 15 charging stations across the country. Industry representatives said only a few of these stations have reached breakeven levels, while most continue to operate below capacity.

OCAC also pointed to implementation challenges, including delays in no-objection certificates issued by local authorities and directives in some areas linking fuel station approvals with the installation of EV chargers.

The council noted that in many countries EV charging is mainly carried out at residential locations, commercial centres and other places where vehicles remain parked for longer periods.

Fuel stations, by contrast, are designed for quick vehicle turnover, which limits the commercial viability of high-capacity charging infrastructure at the current stage of EV market development.

OCAC recommended adopting a phased and demand-driven approach to EV charging infrastructure in consultation with relevant stakeholders, including the ministries of climate change and energy, Ogra, the National Energy Efficiency and Conservation Authority and oil marketing companies.

Industry representatives said the sector would expand charging infrastructure once EV adoption increases and a clearer fiscal framework is in place.