The oil industry in Pakistan has urged the Oil and Gas Regulatory Authority (OGRA) to conduct a thorough investigation into the adverse effects of smuggled fuel discounts and other unfair marketing practices impacting the sector. In a letter addressed to OGRA Chairman Masroor Khan, Zeeshan Tayyeb, Chief Operating and Financial Officer of Gas and Oil Pakistan Limited (GO), highlighted the critical challenges faced by the industry, including the detrimental impact on both the exchequer and the oil companies.
Tayyeb emphasized the importance of addressing these issues through law enforcement to prevent further losses. He pointed out that Pakistan, as a net importer of crude oil and refined products, relies heavily on imported crude to sustain domestic refinery operations. Despite the introduction of high standards like EURO-V for imported gasoline and gas oil, local refineries continue to produce below these specifications, with no clear timeline for nationwide compliance.
The letter also touched on the longstanding relationships between refineries and older Oil Marketing Companies (OMCs), which often lead to biased allocation of supply during periods of fluctuating prices. Tayyeb noted that GO has consistently utilized its allocated products from local refineries before seeking import approvals, maintaining a steady local supply chain.
Tayyeb further explained that GO’s recent approvals for imports represent a minimal portion of the company’s and industry’s sales, and that the company is committed to fully servicing its network of over 1,200 outlets. He also highlighted the significant investment from Aramco, marking the first investment by a Saudi Arabian company in Pakistan’s oil sector, which is expected to enhance energy security and bring long-term benefits to consumers.
The letter underscores the need for local players to adapt as GO works to reclaim its market position and secure supplies for its extensive retail network.
