KARACHI: The Oil and Gas Regulatory Authority (Ogra) has introduced a new verification mechanism for the release of price differential claims (PDC), drawing reservations from the country’s oil sector.
Oil marketing companies (OMCs) have expressed strong concerns over the new verification conditions imposed by Ogra for PDC payments, warning that the move could delay reimbursements and intensify liquidity pressures across the sector, sources said.
According to an official communication, Ogra has directed OMCs to submit scanned copies of sales invoices reconciled with summary sheets, duly verified by their chief executive officers (CEOs) or chief financial officers (CFOs), along with certification from external auditors, for the processing of PDC claims.
While the regulator maintains that the measure is aimed at enhancing transparency and ensuring proper scrutiny, industry stakeholders argue that the requirements are inconsistent with prevailing auditing practices. “External auditors do not verify individual invoices as part of their mandate,” said a senior industry official. “Expecting
them to sign off on thousands of invoices is simply not practical and could create unnecessary bottlenecks.” The PDC mechanism is designed to compensate OMCs for selling petroleum products below cost under government directives. Industry sources said companies have already borne significant financial burdens in recent months, absorbing approximately Rs205 per litre on diesel and Rs100 per litre on petrol.
With reimbursements now contingent on extensive documentation and multi-layered verification, OMCs fear delays in claim processing could further strain their cash flows. “The sector has continued to ensure uninterrupted fuel supply despite mounting financial exposure,” an official said. “However, prolonged delays in PDC payments may affect our ability to sustain operations and meet obligations.”
Stakeholders also noted that audit firms are unlikely to undertake invoice-level verification, as it falls outside the scope of standard audit engagements. This, they said, could hinder the timely submission of claims and slow the overall reimbursement process.
Industry representatives have urged Ogra and the Ministry of Energy to revisit the directive and devise a more practical mechanism that ensures accountability without disrupting business operations.
They added that the oil marketing sector remains a critical component of the country’s energy supply chain, and any disruption to its financial stability could have wider implications for fuel availability and economic activity.
