By SKM
October 16, 2025
ISLAMABAD: In a strongly worded communication, the Oil Marketing Association of Pakistan (OMAP) has accused the Oil and Gas Regulatory Authority (OGRA) of overstepping its legal mandate by interfering in deregulated petroleum markets, particularly the solvent trade — a move that the association says is threatening lawful business operations and investor confidence.
In a formal letter sent Thursday to the OGRA chairman, OMAP warned that OGRA’s repeated demands for commercial and customer data related to solvents and by-products are not only legally baseless but are also creating serious disruptions in the industry. The association stressed that solvents fall under deregulated, free-market commodities, which lie entirely outside OGRA’s jurisdiction on pricing, licensing, or operational control.
OMAP asserted that OGRA’s statutory powers are limited to regulated petroleum products — such as motor gasoline, high-speed diesel, and infrastructure licensing — where it has clear authority on price setting, enforcement, and technical standards. However, by seeking detailed data on products that fall outside this framework, OGRA is, according to OMAP, engaging in regulatory overreach that mirrors tax or audit-level scrutiny, not legitimate regulatory oversight.
“This approach is not only unauthorized, it is actively harming the legal, tax-compliant trade of deregulated petroleum products,” OMAP wrote. “Such actions are creating unnecessary hurdles for refineries, OMCs, and especially small traders and distributors, many of whom are now reluctant to operate in an environment of confusion and excessive interference.”
The letter further emphasized that no oil marketing company or refinery is involved in tax evasion or product adulteration. All products are sold per approved specifications and with all required taxes paid. However, the repeated demand for sensitive, customer-level data threatens commercial confidentiality, exposes clients to unnecessary investigations, and discourages them from doing business through formal channels.
OMAP warned that such interference runs directly counter to the government’s stated goals of improving the ease of doing business, encouraging economic formalization, and boosting investor confidence. Rather than supporting the legal petroleum trade, OGRA’s actions risk driving solvent transactions back into the informal economy, undermining years of progress in curbing smuggling and tax evasion.
Highlighting the importance of the solvent trade, OMAP described it as a small but vital segment that sustains refineries, OMCs, and small industries, while contributing meaningfully to national tax revenues. The association urged OGRA to focus on its core regulatory responsibilities and cease interference in deregulated segments, which should remain governed by free-market principles.
In closing, OMAP called on OGRA to immediately withdraw its data demands, respect the legal boundaries of its authority, and realign its operations with the government’s broader vision for economic growth, industrial facilitation, and policy transparency. Ends
