OMCs Seek Rs66.7bn PDC Settlement Amid Rising Liquidity Pressure

The Oil Companies Advisory Council (OCAC) has urged the Oil and Gas Regulatory Authority (OGRA) to release outstanding Price Differential Claims (PDCs) worth around Rs66.7 billion, warning that delayed payments are putting significant pressure on the liquidity of oil marketing companies (OMCs).

 

In a letter to OGRA, the OCAC said the outstanding claims are equivalent to the cost of around five Mogas cargoes, with a substantial portion pending since March 2026. The council said it had previously requested settlement by June 8, but the claims remain unresolved despite verification and audit procedures.

 

The OCAC called for the immediate release of all verified and approved claims, including premium differential claims linked to motor spirit imports during the recent geopolitical crisis.

 

The council also sought notification of the approved Rs1.22 per litre increase in OMC margins. It noted that OMC margins have remained unchanged since September 2023, despite higher operating, financing, technology, regulatory and compliance costs.

 

Dealer margins were raised by Rs1.34 per litre in August 2026, while the corresponding increase in OMC margins is still awaiting notification.

 

The OCAC warned that OMCs are facing an acute liquidity crunch as they continue to finance fuel procurement, imports, inventories and nationwide distribution while government payments remain delayed.

 

It also highlighted potential supply risks from geopolitical tensions and disruptions to regional routes, including the East-West Pipeline. The council called for a predictable mechanism to periodically adjust OMC margins and cautioned that prolonged liquidity pressure could affect the stability of the fuel supply chain.