After Dealers’ Margin Increase, OMCs Seek Rs1.22/Litre Margin Revision

Islamabad: The Oil Companies Advisory Council (OCAC) has urged the government to immediately notify a Rs1.22 per litre increase in the margin of oil marketing companies (OMCs), saying the sector is facing severe financial pressure after going nearly three years without a margin revision.

The demand comes after the recent increase in petroleum dealers’ margins, with the OCAC maintaining that OMCs are also entitled to a long-overdue adjustment in their regulated margin.

The OMC margin was last revised in September 2023. Since then, FY2023-24, FY2024-25 and FY2025-26 have passed, while FY2026-27 has already commenced without a corresponding revision.

According to the OCAC, the Economic Coordination Committee (ECC) has already approved a Rs1.22 per litre increase in the OMC margin based on annual national CPI for FY2023-24 and FY2024-25. However, the adjustment has yet to be formally notified and implemented.

The council said the current OMC margin of Rs7.87 per litre was no longer adequate to cover the industry’s rising costs, increased stock-cover requirements, regulatory obligations and financial risks.

It said OMCs had continued to ensure uninterrupted fuel supplies despite mounting pressures and had supported the government’s introduction of the daily petroleum pricing mechanism.

The council also highlighted the financial risks assumed by OMCs during geopolitical turmoil since March 2026, saying companies committed substantial resources to maintain uninterrupted petroleum supplies while operating on a regulated gross margin of only 2 per cent.

The OCAC further pointed to approximately Rs66.7 billion in outstanding Price Differential Claims, while GST and input-tax reimbursements also remained unresolved. It said the accumulated receivables were creating a serious liquidity crunch for OMCs.

The council also rejected the idea of making completion of a multi-year digitisation programme a precondition for the approved margin increase, saying OMCs had already submitted a three-year implementation plan and remained committed to the government’s digitisation objectives.

The OCAC warned that continued financial pressure and regulatory uncertainty could undermine investment in Pakistan’s downstream petroleum sector and further weaken investor confidence.

It has called for immediate notification of the Rs1.22 per litre OMC margin increase, determination of overdue margins for FY2025-26 and FY2026-27, and establishment of a mechanism for timely annual revisions.

The council said a sustainable margin framework was essential to ensure the financial viability of OMCs and their ability to maintain Pakistan’s petroleum supply chain.