ISLAMABAD, June 3, 2025: The Oil and Gas Regulatory Authority (OGRA) has issued a serious warning to oil marketing companies (OMCs) and refineries across Pakistan, threatening to suspend their operational licences if they continue violating regulatory directives related to the national fuel supply chain.
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In a formal letter addressed to the chief executives of more than 40 OMCs and refineries, OGRA expressed strong dissatisfaction with the widespread failure of companies to follow through on commitments made during recent Product Review Meetings (PRMs).
OGRA also said that the refineries will also face action if they produce less-than-committed volumes for three consecutive months. License suspension may also result from failure to keep 20-day oil stocks.
OMCs will have to lift the required petroleum products from refineries as well, or they will also face cancellation of their licenses, OGRA said. The regulator will also slap penalties on the OMCs that lifted insufficient products from the refineries. OMCs involved in less lifting of products more than 50% will face a penalty of Rs. 7.5 million and those lifting more than 75% will face a penalty of Rs. 10 million respectively.
The authority specifically criticized the lack of compliance in uplifting petroleum products from local refineries by OMCs, and the repeated shortfalls in production targets by several refineries.
OGRA cautioned that such non-compliance is putting significant strain on the country’s energy infrastructure, undermining the reliability of the petroleum supply chain, and leading to preventable financial losses through unnecessary imports. The warning issued by OGRA said that consistent disregard for PRM decisions is disrupting its ability to manage the oil supply system efficiently. As a result, the country’s energy security is threatened, and financial damage is being caused due to excessive reliance on imported petroleum.
After extensive discussions, OGRA concluded that any OMC failing to lift local refinery output as per its PRM obligations, or failing to maintain the mandatory 20-day fuel inventory, will face suspension of its licence. Similarly, any refinery that fails to meet its agreed-upon production levels for three consecutive months will be subject to the same action.
The notice was sent to senior management at leading companies including Pakistan State Oil (PSO), Cnergyico PK, Attock Petroleum, PARCO, Puma Energy, and Total PARCO. Other companies across key cities like Lahore, Karachi, and Islamabad also received the warning, including Allied Petroleum, Eco Gasoline, Oil Industries, GO, Echo Oil, Petro Pakistan, WEL, OTO Pakistan, Hascol, Oilco Petroleum, Taj Gasoline, Benzin, Be Energy, My Petroleum, Askar Oil Services, PARCO-PEARL, Vital Petroleum, Max-Fuel, Jinn Petroleum, Kepler, Flow Petroleum, Exceed, Euro Oil, Khyber Petroleum, Fossil Energy, Lucky Petroleum, Zoom Marketing, Pure Petroleum, Fast Oil, Alhamdali International, Horizon Oil, HG Petro, Hi-Tec Lubricants, Best Petroleum, Al-Noor Petroleum, LaGuardia, and The Fuelers.
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OGRA underscored the importance of strict compliance with PRM directives to ensure the stability of the country’s fuel distribution network, reduce dependence on imported fuel, and maintain consistent energy availability nationwide.
The regulatory body warned that any further violations would trigger immediate enforcement action, including suspension of business operations.
