KARACHI: Oil marketing companies (OMCs) are awaiting the release of outstanding price differential claims (PDCs) amounting to Rs107 billion.
Industry officials told The News that the OMC sector is facing an escalating financial strain as billions in unpaid PDCs threaten not only corporate stability but also the continuity of the national fuel supply chain.
Since mid-March 2026, around Rs107 billion in PDC claims have accumulated without settlement. Despite the urgency, the Oil and Gas Regulatory Authority (Ogra) has yet to process these payments, they said.
Instead, Ogra has issued a series of piecemeal documentation directives, including a revised format as recently as last night, creating procedural uncertainty and further delaying disbursements, they added.
Industry representatives said this administrative approach has compounded financial pressures on OMCs, which are already grappling with sharply rising working capital requirements. A surge in international oil prices, driven by ongoing regional tensions, has significantly increased operational financing needs, forcing companies to rely more heavily on commercial borrowing to sustain routine operations.
They further noted that a proposal to withhold 10 per cent of any PDC disbursement pending reconciliation with the Federal Board of Revenue (FBR) would add to the burden. The measure could impose an additional financial strain of Rs7.4 billion on the sector, further tightening liquidity at a critical time.
“The consequences of these delays are already becoming evident. Supply chain credit is tightening, and the financial viability of several OMCs is under threat,” they said, warning of serious risks to business continuity that could ultimately disrupt fuel supplies across the country if the situation persists.
They stressed that any such disruption would not stem from operational inefficiencies within the sector but from regulatory and administrative bottlenecks. Delays in settling legitimate claims, they said, undermine confidence, destabilise the market and place undue pressure on an already strained energy ecosystem.
In light of these challenges, the Ministry of Energy should intervene decisively, industry officials said. They called for immediate directives to Ogra to clear all outstanding PDC claims without further delay, alongside the introduction of a single, comprehensive documentation framework to replace the current ad hoc approach.
They also urged the withdrawal of the proposed 10 per cent withholding to avoid further financial stress on the sector.The resolution of the issue, they said, is critical not only for administrative efficiency but also for safeguarding Pakistan’s energy security, warning that delays could deepen the crisis if not addressed promptly.
