The government has called an urgent meeting with oil refinery and OMC CEOs after OCAC warned that continued petroleum pricing interventions have caused Rs104 billion value erosion and severe financial stress in Pakistan’s downstream petroleum sector amid investor concerns
According to official sources, the Minister for Petroleum has called the meeting in response to OCAC’s request, which highlighted mounting financial stress, investor uncertainty and significant inventory losses across the industry.
OCAC, in a formal letter to the Ministry of Energy (Petroleum Division), warned that continued unilateral pricing decisions had created severe pressure on Pakistan’s downstream petroleum sector, including an estimated Rs104 billion value erosion in inventories held by OMCs and refineries.
The council stated that recent pricing changes under a revised formula had exposed companies to an “unprecedented financial shock,” leading to what it described as “real and immediate destruction of working capital, liquidity and shareholder value.”
It further cautioned that the situation had escalated beyond risk, warning of potential investor withdrawal, insolvency of weaker players, and long-term damage to sector stability if policy uncertainty continues.
OCAC also noted that petroleum pricing decisions were being implemented without adequate consultation with industry stakeholders responsible for maintaining fuel supply chains, despite their role in ensuring uninterrupted fuel availability across the country.
The council stressed that OMC margins had not been revised since 2023, even as inflation, freight costs and operational expenses continued to rise, further compounding financial strain on the sector.
It also pointed out that outstanding price differential claims and mandatory stockholding requirements were adding additional pressure on already stressed balance sheets.
Following OCAC’s request, the Petroleum Division has scheduled a high-level meeting on Tuesday, June 23, 2026, which will be attended by CEOs of oil refineries and OMCs to discuss the issue and explore possible policy adjustments.
Industry stakeholders expect the meeting to focus on stabilising the pricing framework, protecting inventory values, and restoring investor confidence in the downstream petroleum sector.
