OGRA Fines 20 OMCs Rs400M for Stock Issues

Islamabad, June 12, 2025 — The Oil and Gas Regulatory Authority (OGRA) has unleashed a crackdown, slapping hefty penalties exceeding Rs400 million on 20 Oil Marketing Companies (OMCs) for flouting the mandatory 20-day petroleum stock cover and inadequate upliftment of local refined fuel, a move following months of monitoring and repeated directives via Product Review Meetings (PRMs). The fines, ranging from Rs6 million to Rs37.5 million, target non-compliance with Rule 30-A of the Pakistan Petroleum (Refining, Blending and Marketing) Rules, 1971, licensing conditions, and government policies, uncovered during a March 2025 review.

Show Cause Notices were issued on April 24, 2025, to CEOs and Managing Directors of Petro Pakistan Pvt Ltd, Khyber Petroleum, Benzin Petroleum, Taj Gasoline, Horizon Oil, Oil Industries Pakistan, Fast Oil, Zoom Marketing Oils, Vital Petroleum, Flow Petroleum, My Petroleum, Allied Petroleum, Euro Oil, Al-HAMMDALI International Trade, Al-Noor Petroleum, Lucky Petroleum, Askar Oil, Be Energy, OTO Pakistan, and Jinn Petroleum, demanding explanations within 15 days under the OGRA Ordinance, 2002 and 2016 Rules. After unsatisfactory replies, OGRA imposed penalties on May 30, 2025, with Al-HAMMDALI and Khyber Petroleum hit hardest at Rs37.5 million each, followed by Lucky Petroleum and Petro Pakistan at Rs35 million, OTO Pakistan at Rs30 million, and others from Rs6 million to Rs27.5 million.

OGRA warns that stock shortages and low local upliftment jeopardize national energy security, ordering penalty payments within 10 days or face license suspension. This enforcement drive reaffirms OGRA’s commitment to energy stability. Web context highlights Pakistan’s fuel supply risks (e.g., 25% import reliance, web ID: 0), while X posts show public support—some back regulation, others question OMC accountability. Critically, the narrative of “enforcement” may mask systemic issues—web sources note refinery inefficiencies, and X sentiment suggests distrust in long-term impact, hinting at ongoing vulnerabilities.