ISLAMABAD: Pakistan’s oil industry has strongly opposed the Oil & Gas Regulatory Authority’s (Ogra) unilateral decision to enforce a 6–12 month deadline for the complete digital integration of more than 32,000 ground tanks, depots and petrol pumps nationwide.
Read More: Pakistan fuel oil exports scale fresh high in 2025, to hold in 2026
Industry leaders say the mandate comes without any plan for recovering the estimated Rs55 billion cost required for the system. In formal letters to Ogra and the Petroleum Division, the Oil Companies’ Advisory Council (OCAC) and the Oil Marketing Association of Pakistan (OMAP) termed the instructions “dictatorial” and technically unrealistic.
According to industry officials, Ogra Chairman Masroor Khan warned oil marketing companies that failure to digitise 600 installations by Jan 31, 2026 — and the remaining sites by Jan 31, 2027 — would result in punitive action.
Pakistan’s oil industry opposes a six-month digital integration deadline for over 32,000 facilities due to cost concerns and technical challenges, calling the Ogra’s demands unrealistic and dictatorial. https://t.co/AMIs3E3LK1
— Investify Pakistan (@investifypk) December 4, 2025
The push requires the Auto Tank Gauging (ATG) system to be installed across all 16,000 pumps by June 2026, with each site linked to a central dashboard tracking every litre of fuel. Executives said they were not permitted to present their concerns during the meeting and were told the initiative was a priority of the prime minister.
Following the tense meeting, OCAC and OMAP representatives held an emergency session with Petroleum Minister Ali Pervaiz Malik to register their objections. The minister directed the regulator to review the concerns raised and work toward a practical roadmap that supports both businesses and consumers.
Industry leaders clarified that while they support digital integration, the required ATG hardware is not available off-the-shelf and would cost Rs55–60bn to install and calibrate across the country.
The OCAC, in a strongly worded letter, said Ogra had dismissed repeated requests for a phased, five-year implementation plan and a viable cost recovery mechanism. It emphasised that ATG systems are capital-intensive, custom-designed for each tank and require long procurement and installation timelines.
Read More: Petroleum prices likely to drop by up to Rs6.35 per litre from Dec 1
The industry also noted that stagnant OMC margins and past payments to PITB for the Track and Trace System — which still shows no progress — leave companies financially stretched and unable to absorb new burdens.