Oil Sector Rejects OGRA’s Deadline for Digital Integration of Fuel Sites

Pakistan’s oil sector has rejected OGRA’s unilateral deadline for full digital integration of more than 32,000 fuel storage and retail sites. The Oil Companies Advisory Council, which represents over three dozen firms, including refineries and the Oil Marketing Association of Pakistan, raised the alarm in a formal letter to OGRA and the Petroleum Division. The organizations warned that the project carries an industrywide cost of about Rs. 55 billion without any mechanism for cost recovery. Both associations said the regulator’s instructions were “dictatorial” and impossible to execute within the proposed six to twelve-month window. Executives said an OGRA team led by Chairman Masroor Khan held a meeting with chief executives of oil marketing companies and warned them of punitive action if they failed to digitally integrate 600 installations by January 31, 2026 and complete the remaining sites by January 31, 2027. Under the Auto Tank Gauging system the entire chain including 16,000 retail pumps must be linked to a central dashboard for tracking every litre of fuel. Industry officials complained that they were not allowed to present the practical obstacles. One executive quoted the OGRA chairman as saying the digital deadline reflected the vision of the prime minister and companies “have to comply”. Soon after that meeting, the industry held its own emergency huddle and agreed that it would not accept the regulator’s stance. A joint delegation of the OCAC and OMAP then met Petroleum Minister Ali Pervaiz Malik and conveyed their concerns. The minister later advised OGRA to address the issues raised by the companies while working toward sector-wide reforms. Industry representatives stressed that they support digitisation in principle but the required hardware is highly specialised and not available off the shelf. They noted that building and installing Auto Tank Gauging equipment across the country would cost Rs. 55 to Rs. 60 billion and require a realistic five-year timeline rather than the current deadlines. Each unit has to be custom-designed for individual tanks and requires long lead times for manufacturing and calibration. The OCAC also reminded the regulator that oil marketing margins have remained unchanged for two years, leaving companies unable to absorb new capital expenses. It added that millions of rupees have already been paid for the track and trace system run by the Punjab Information Technology Board, yet there is still no outcome or timeline for completion. In its letter, the OCAC said the OGRA meeting “proceeded as a monologue” and repeated requests to present the industry’s position were ignored. The association urged the regulator to work with the sector on a phased plan supported by an approved cost recovery mechanism.