New Delhi, April 9 – Pakistan's oil marketing companies are facing a severe liquidity crisis, with unpaid price differential claims totaling up to 107 billion rupees remaining outstanding. Industry players are accusing the Oil and Gas Regulatory Authority (OGRA) of repeatedly changing documentation requirements instead of clearing the outstanding dues, according to a report in the local media.
Industry estimates show that the first claim, worth around 27 billion rupees, filed in mid-March, was only partially settled, while subsequent claims worth 70-80 billion rupees remain entirely unpaid. This has left companies operating on extremely thin margins, struggling to maintain cash flow, as reported by the Karachi-based Express Tribune.
Officials say the problem is not a lack of transparency, but rather unpredictability. Each time OMCs attempt to comply, Ogra introduces new documentation demands – from invoice-level reconciliations to repeated CEO, CFO, and auditor certifications – effectively restarting the process. A revised format was circulated as recently as Monday night, but there is no clarity on whether further changes will follow. "Each time the industry prepares to comply, a new requirement arrives. There is no clear end in sight," said a senior industry source, noting that some audit firms may refuse to participate if the requirements fall outside the standard audit scope.
The situation could worsen if the regulatory authority proceeds with a proposal to withhold 10% of payments until tax reconciliation with the Federal Board of Revenue, which could lock up another 7.4 billion rupees for up to two months.
Price differential claims arise when the government caps fuel prices below the procurement cost, and the difference needs to be reimbursed. Delays force oil marketing companies to bridge the gap through borrowing, which adds to the financial strain.
Industry officials warn that this crisis could soon lead to fuel supply disruptions if the liquidity continues to erode. The sector has urged the Ministry of Energy to intervene and has called for immediate settlement of dues, a single documentation framework, and the withdrawal of the proposed move to withhold some payments, the report added.