KARACHI: Oil marketing companies (OMCs) are failing to uplift petroleum products from local refineries in line with commitments made during the Product Review Meeting (PRM) for May.
Despite directives issued by the Oil and Gas Regulatory Authority (Ogra), the situation has shown little improvement, according to sources in the oil sector.
The upliftment of petrol and high-speed diesel (HSD) remained below prorated targets during the first half of May 2026. Official supply data up to May 17 shows motor spirit (MS/petrol) upliftment at 330,181 metric tonnes against a prorated demand target of 357,274 tonnes, reflecting a shortfall of 25,146 tonnes, or 8.0 per cent.
The shortfall in HSD was more pronounced, with actual upliftment recorded at 281,092 tonnes compared with a prorated requirement of 366,981 tonnes. This represented a deficit of 83,174 tonnes, or 23 per cent below target.
Industry data showed refinery-wise supplies also recorded significant variances during April and early May.
Sources said low upliftment by OMCs from refineries had persisted since April. During April 2026, Attock Refinery Limited (ARL) supplied 43,861 tonnes of petrol against an allocation of 53,300 tonnes, posting an 18 per cent shortfall. Pakistan Refinery Limited (PRL) remained 16 per cent below allocation, while Cnergyico (CPL) recorded the steepest decline, with supplies 44 per cent lower than allocated volumes.
National Refinery Limited (NRL) and Parco, however, slightly exceeded petrol supply allocations by 3.0 per cent and 4.0 per cent, respectively.
For HSD in April, all major refineries remained below allocations. Parco posted the largest numerical shortfall of more than 51,000 tonnes, while ARL and CPL each remained around 26 per cent below targets.
The trend continued during May 1-10. ARL’s petrol supplies were 30 per cent below prorated allocations, while NRL remained 28 per cent short. Parco also recorded a 9.0 per cent decline.
In diesel supplies during the same period, CPL posted the sharpest drop, supplying 18,596 tonnes against a prorated allocation of 34,903 tonnes, a deficit of 47 per cent.
A few days ago, Ogra warned that delays or failure to uplift committed fuel volumes could trigger regulatory action under applicable laws, including possible restrictions on future imports.
Industry sources said OMCs have not been lifting products in line with their PRM commitments since April, despite refineries maintaining production levels and facing rising inventories.
They added that the situation has created significant cash flow pressures and storage constraints for refineries. OMCs, however, maintain that their price differential claims (PDCs) remain pending, affecting their ability to meet procurement commitments.
Sources further said that Pakistan State Oil has also not been fully adhering to uplift commitments.
