By SKM
April 1, 2026
ISLAMABAD: Pakistan’s oil marketing sector has raised alarm over OGRA’s plan to withhold 10% of Price Differential Claims (PDC) at the time of disbursement, warning the measure could lock up billions of rupees, strain liquidity, and disrupt fuel supply nationwide.
In a formal representation to the Oil and Gas Regulatory Authority (OGRA), the Oil Companies Advisory Council (OCAC) said the withholding would tie up around PKR 2.7 billion from the first tranche of PKR 27 billion, with a cumulative impact of nearly PKR 7.4 billion when the second tranche of PKR 47 billion is released.
The move, endorsed by the Ministry of Energy (Petroleum Division) to verify sales tax and petroleum levy payments with the Federal Board of Revenue, requires OGRA to release the withheld amount within two months.
While intended to improve transparency, industry officials said the withholding introduces “an additional financial burden” in a sector already operating under tight banking limits, frozen margins, and disrupted cash flows. OCAC warned smaller and mid-sized Oil Marketing Companies (OMCs) could face acute financial stress, potentially affecting fuel availability.
Adding to the strain, OGRA has directed monthly audits of all stocks and inventories by PricewaterhouseCoopers (PwC), with reports due within a week of each month’s close. The directive, following instructions from the Prime Minister, has raised concerns over feasibility and operational bottlenecks, given the nationwide spread of storage facilities.
OCAC urged regulators to provide detailed Terms of Reference (TORs) and allow multiple top-tier audit firms — ranked A-category by the Institute of Chartered Accountants of Pakistan — to participate, citing ongoing engagements with firms like KPMG. A phased approach was also suggested to allow existing audit arrangements to continue for the current cycle.
Industry stakeholders highlighted that the 2022 PDC reimbursement system had functioned efficiently, ensuring timely settlements. The new withholding, combined with tighter verification and additional audit requirements, could destabilize cash flows and increase operational risks.
Despite the concerns, OCAC reaffirmed its commitment to supporting regulatory transparency but urged a balanced approach that safeguards the financial sustainability of OMCs while maintaining accountability in the petroleum supply chain. Ends
