LAHORE: The Oil Marketing Association of Pakistan (OMAP) has written an urgent letter to Prime Minister Muhammad Shahbaz Sharif, seeking immediate intervention to address the worsening challenges faced by the sector.
In the letter, referenced 407/OMAP/2025 and dated June 28, OMAP Chairman Tariq Wazir Ali has highlighted the deteriorating situation confronting new and emerging players in Pakistan’s downstream petroleum sector. Despite investing over PKR 150 billion—including PKR 81 billion in storage infrastructure and PKR 75 billion in retail development—emerging OMCs continue to face systemic neglect, regulatory discrimination, and unsustainable business conditions.
“Emerging OMCs have contributed over 648,000 metric tons of strategic storage capacity—nearly 50% of the national total—while also playing a vital role in job creation, FDI inflows, and energy access in underserved regions,” the letter states. “Yet we are consistently sidelined and unfairly targeted in policy and enforcement decisions.”
The letter expresses concern over the conduct of the Oil and Gas Regulatory Authority (OGRA), noting institutional bias and a regulatory environment that favors legacy players. Appointments of individuals from large OMCs to top regulatory posts, the letter asserts, have led to conflicts of interest and hindered fair competition.
OMAP has identified several pressing challenges including repeated foreign exchange losses and delayed tax adjustments, unsustainably low margins, unjust classification in the “gray sector,” blocking access to financing and unfair penalties tied to logistical issues beyond OMCs’ control
“Emerging OMCs, with only 5% of the market share, are routinely blamed for sector-wide disruptions such as fuel shortages, smuggling, and supply chain breakdowns,” said Tariq Wazir Ali.
OMAP stressed that these issues contradict the Prime Minister’s vision for economic revival, investor confidence, and ease of doing business. Without urgent reforms and a transparent, equitable regulatory framework, OMAP warned of a collapse in investor trust and the weakening of Pakistan’s emerging energy landscape.
OMAP has formally requested an immediate meeting with the Prime Minister to present their case and propose constructive solutions.