- August 20, 2026
- Posted by: Tresmark
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The Oil Companies Advisory Council (OCAC) has called for an increase in the regulated margins of oil marketing companies (OMCs), warning that the sector is facing growing financial pressure after operating with unchanged margins for three years.
In a letter to Petroleum Minister Ali Pervaiz Malik, the OCAC said OMC margins were last revised in September 2023 and remained unchanged throughout FY2023-24, FY2024-25 and FY2025-26.
The council said rising stock-cover requirements, regulatory compliance costs and other financial pressures have increased the industry’s operating burden. OMCs are currently working with a regulated gross margin of just 2%, while the existing margin stands at Rs7.87 per litre.
The Economic Coordination Committee (ECC) has already approved a Rs1.22 per litre increase in OMC margins based on CPI adjustments for FY2023-24 and FY2024-25, but the revision has yet to be officially notified.
The OCAC also highlighted significant liquidity constraints, with around Rs66.7 billion in Price Differential Claims still outstanding, alongside unresolved GST and input-tax reimbursements.
The council urged the government to immediately notify the approved margin increase, determine overdue margins for FY2025-26 and FY2026-27, and establish a mechanism for regular annual revisions.
It warned that prolonged financial pressure and regulatory uncertainty could discourage investment in Pakistan’s downstream petroleum sector and undermine the industry’s long-term financial sustainability.
