Latest news with #OilMarketingAssociationofPakistan
Express Tribune
04-07-2025
- Business
- Express Tribune
Oil marketers seek meeting with PM
Listen to article The Oil Marketing Association of Pakistan (OMAP) has written a letter to Prime Minister Shehbaz Sharif, seeking immediate intervention and a meeting to address the worsening challenges faced by the sector. In the letter, OMAP Chairman Tariq Wazir Ali highlighted the deteriorating situation confronting new and emerging players in Pakistan's downstream petroleum sector. Despite investing over Rs150 billion, including Rs81 billion in storage infrastructure and Rs75 billion in retail development, emerging oil marketing companies (OMCs) continue to face systemic neglect, regulatory discrimination and unsustainable business conditions. "Emerging OMCs have contributed over 648,000 metric tons of strategic storage capacity – nearly 50% of the national total – while also playing a vital role in job creation, FDI (foreign direct investment) inflows and access to energy in underserved regions," the letter stated. "Yet, we are consistently sidelined and unfairly targeted in policy and enforcement decisions." They expressed concern over the conduct of the Oil and Gas Regulatory Authority (Ogra), noting "institutional bias and a regulatory environment that favours legacy players". "Appointments of individuals from large OMCs on top regulatory posts have led to conflict of interests and hindered fair competition." OMAP identified several pressing challenges including repeated foreign exchange losses and delayed tax adjustments, unsustainably low margins, classification in the grey sector, blocking access to financing and imposition of penalties tied to logistical issues beyond OMCs' control. "Emerging OMCs, with only 5% of the market share, are routinely blamed for sector-wide disruptions such as fuel shortages, smuggling and supply chain breakdowns," said Chairman Tariq Wazir Ali.
Express Tribune
28-06-2025
- Business
- Express Tribune
Emerging OMCs demandfair, equal treatment
Listen to article Pakistan's emerging oil marketing companies (OMCs) have voiced serious concerns about what they describe as unfair regulatory practices and unequal treatment compared to larger, established players in the petroleum industry. The Oil Marketing Association of Pakistan (OMAP) has written a letter to Petroleum Minister Ali Pervaiz Malik to highlight the challenges they are facing despite making huge investments and significant contributions to the country's petroleum sector. According to the letter, new OMCs have invested a total of Rs150 billion in petroleum infrastructure, of which Rs81 billion has been spent on building storage terminals, which now make up nearly 50% of the national storage capacity. Another Rs75 billion has been invested in developing retail outlets and other facilities and a further Rs70 billion is being injected into ongoing projects. These companies have also played an important role in ensuring fuel supply to remote and troubled areas, contributed large amounts in taxes and created thousands of jobs across the country. However, despite such large investments and efforts, emerging OMCs currently hold only 5% share of Pakistan's oil market. "OMAP believes this is unfair because these companies have more than 3,200 retail outlets and storage capacity equal to that of major players," the letter said. They argued that market rules and policies, although designed to encourage competition and investment, were not being applied equally. One of the main issues highlighted was the strict enforcement of the rule that required all OMCs to maintain a minimum 20-day stock cover. OMAP argued that the rule should be applied flexibly, considering each company's size and financial strength. However, they claimed, that the regulator – Oil and Gas Regulatory Authority (Ogra) – has not provided this flexibility.
