A fresh rift has emerged between Pakistan’s downstream oil sector and its regulator, as the Oil Marketing Association of Pakistan (OMAP) accused the Oil and Gas Regulatory Authority (OGRA) of exceeding its legal authority by demanding detailed data on deregulated petroleum products, particularly solvents.
In a strongly worded letter to OGRA Chairman Masroor Khan, OMAP warned that the regulator’s actions were creating “fear, confusion, and unnecessary hurdles” for refineries and Oil Marketing Companies (OMCs). The letter (Ref: 447/OMAP/2025) claims that OGRA’s officials have been repeatedly seeking sales and customer information for solvent products — despite having no statutory power to do so.
“Solvents and related by-products are free-market goods, not subject to OGRA’s price control, licensing, or regulatory jurisdiction,” the letter stated. “Such repeated demands for confidential business or customer data are outside OGRA’s legal functions and resemble tax or audit inquiries rather than legitimate regulatory oversight.”
The association stressed that OGRA’s authority is confined to the regulated domain — motor gasoline, high-speed diesel, and licensed petroleum infrastructure. OMAP maintained that solvent products are fully legal, taxed, and sold transparently, yet the regulator’s interventions are discouraging investment and disrupting refinery operations.
According to industry sources, the dispute intensified after several OMCs received notices from OGRA seeking breakdowns of solvent sales, volumes, and buyers. “This overreach has raised red flags across the industry,” said one senior executive at a leading OMC. “It’s unclear why OGRA is demanding such data when solvent production and trade fall entirely outside its jurisdiction.”
OMAP’s chairman Tariq Wazir Ali, who signed the letter, said the regulator’s actions were already affecting business sentiment. “Refineries are being discouraged from producing solvent-based by-products, while OMCs are being pressured to share customer-level data for non-regulated products,” he wrote. “This confusion undermines years of effort to formalize the solvent trade and replace illegal imports with taxed local production.”
The association also rejected any insinuation of malpractice in the solvent segment, asserting that all dues and taxes are paid in full. “No OMC or refinery is involved in tax evasion or adulteration,” the letter stated. “However, sharing confidential client information exposes legitimate businesses to unnecessary scrutiny, damaging trust and discouraging compliance.”
Industry analysts say this clash reflects a broader policy confusion within Pakistan’s partially deregulated oil market, where OGRA’s role remains under debate following the government’s decision to deregulate certain product categories. “The regulator seems reluctant to let go of control,” said one energy policy expert. “But in a deregulated framework, OGRA’s authority should be limited to ensuring quality and safety standards, not pricing or commercial monitoring.”
OMAP has urged OGRA to withdraw its demands and align its practices with the government’s Ease of Doing Business policy. It also called for clearer policy boundaries between regulated and deregulated segments to prevent similar disputes in the future.
“The solvent trade is a small but vital segment that supports refineries, OMCs, and small industries while contributing to government revenues,” OMAP said. “Rather than discouraging this legal and transparent business, OGRA should facilitate it and focus on its core regulatory functions.”
The letter has been copied to all major OMCs and relevant ministries, signaling industry-wide concern. Unless OGRA clarifies its stance, sources warn, the episode could deepen mistrust between the regulator and oil marketing companies — at a time when the downstream sector is already struggling with tight margins, delayed payments, and policy uncertainty.
