The Biz Update One of Pakistan's Most Reliable Business News Website
Related Articles
KARACHI, August 24, 2026: The Oil Companies Advisory Council (OCAC) has urged the government to immediately notify the approved increase in the regulated margins of Oil Marketing Companies (OMCs), warning that the sector is facing mounting financial and liquidity pressures.
The OMC margin was last revised in October 2023 and has remained unchanged for nearly three years. Since then, companies have faced higher stock-cover requirements, rising regulatory costs and increased operational expenses.
The Economic Coordination Committee (ECC) has already approved a Rs1.22 per litre increase in the OMC margin. However, the increase has not yet been notified, leaving the existing margin of Rs7.87 per litre inadequate to meet rising costs.
The OCAC also pointed to a growing liquidity problem caused by around Rs66.7 billion in Price Differential Claims (PDCs), along with pending GST and input tax reimbursements.
The council said OMCs remain committed to the government’s digitisation programme and have already submitted a three-year implementation plan. However, the industry believes the approved margin increase should not be linked to the completion of a costly, multi-year digitisation programme.
According to the OCAC, the margin increase would strengthen the financial position and profitability of OMCs. It would also provide immediate liquidity and help reduce reliance on short-term borrowing, particularly for Pakistan State Oil (PSO).
The council has called for the immediate notification of the Rs1.22 per litre increase and the determination of overdue margins for FY2026 and FY2027.
It has also proposed a mechanism for regular annual revisions of OMC margins to prevent similar delays in the future. In addition, the OCAC has called for a stable and sustainable long-term regulatory framework for the petroleum marketing sector.
The council has requested an urgent meeting with senior government officials to discuss the industry’s financial challenges and resolve the long-pending margin issue.
