Oil firms seek Rs1.22 per litre margin increase

Oil firms seek Rs1.22 per litre margin increase

Oil marketing companies (OMCs) have demanded an increase of Rs1.22 per litre in their margins on petrol and high-speed diesel, urging the government to implement a previously approved adjustment and clear outstanding financial claims.

The Oil Companies Advisory Council (OCAC) has written to the chairman of the Oil and Gas Regulatory Authority (OGRA), calling for the resolution of pending price claims worth Rs66 billion and the implementation of revised profit margins for oil marketing companies.

According to the letter, OMCs have been awaiting the settlement of their financial claims since March 2026. The advisory council urged OGRA to expedite the verification process and ensure the release of the outstanding payments to ease financial pressure on the companies.

The OCAC also highlighted that the government had approved an increase in the margins of oil marketing companies in September 2023. However, the proposed adjustment of Rs1.22 per litre has yet to be formally notified and implemented, according to the council.

The industry body argued that the delayed implementation had created uncertainty for oil marketing companies and affected the settlement of their financial entitlements. It called for the immediate enforcement of the revised margins in line with the earlier decision.

The letter further pointed out that the government had recently implemented a Rs1.34-per-litre increase in the margins of petroleum dealers. However, the corresponding Rs1.22-per-litre increase approved for OMCs remained pending.

The OCAC urged the regulator to address the disparity by notifying the OMC margin adjustment and completing the verification of outstanding claims at the earliest.

The demand comes amid continued discussions over petroleum pricing mechanisms, industry profitability and the financial sustainability of oil marketing companies operating in Pakistan.