LAHORE: The Oil Marketing Association of Pakistan (OMAP) has called for urgent policy action, cautioning that the current Price Differential Claims (PDC) system is putting fuel supply stability across the country at risk.
In separate letters addressed to Federal Energy Minister Ali Pervaiz Malik and the chairman of the Oil and Gas Regulatory Authority, OMAP Chairman Tariq Wazir Ali described the challenges facing the downstream petroleum sector as “increasingly unsustainable.”
While recognising the government’s efforts to keep fuel prices stable amid regional tensions involving the United States, Israel, and Iran, the association warned that PDC levels have surged to around Rs78 per litre on petrol and Rs176 per litre on diesel. These high levels, it said, are severely squeezing profit margins and effectively turning oil marketing companies into financial intermediaries.
OMAP also highlighted that frequent weekly price revisions are disrupting financial planning and inventory management, particularly for smaller oil marketing companies that now face the possibility of shutting down operations.
To address the situation, the association proposed several measures, including establishing a centralised PDC management system through the State Bank of Pakistan, extending payment timelines, facilitating low-cost bank financing, and creating a joint government-industry committee to review policies.
