Petrol Dealers Warn of Financial Pressure Over Delayed Payments and Smuggled Fuel
Islamabad, June 2, 2026 — The Oil Marketing Association of Pakistan (OMAP) has expressed concern over growing financial and operational challenges in the country’s petroleum sector and has urged the government to hold urgent talks with industry stakeholders.
In a letter to the Prime Minister, the association said oil marketing companies are facing serious liquidity issues due to delayed payments and rising operational costs.
💰 Financial Challenges in the Sector
According to OMAP, the industry is under pressure due to multiple unresolved financial matters, including:
- Delays in Price Differential Claims (PDCs)
- Outstanding foreign exchange losses
- Pending sales tax adjustments
- Unpaid IFEM-related receivables
- Delays in margin revisions
- Rising financing and digitization costs
The association warned that these issues are affecting investment in fuel storage, logistics, and retail network expansion.
⛽ Concerns Over Illegal Fuel Trade
OMAP also raised concerns about the presence of smuggled and undocumented petroleum products in the local market.
It stated that legal oil marketing companies are facing unfair competition, which is impacting both industry revenues and government tax collection.
⚖️ Call for Policy Stability
The association urged authorities to avoid additional taxation on the sector and instead focus on policy stability and long-term planning.
It said frequent policy changes and rising costs are discouraging investment in Pakistan’s petroleum supply chain.
📌 Conclusion
OMAP has called for immediate government engagement with stakeholders to resolve financial bottlenecks, address illegal fuel trade, and ensure a stable and sustainable energy sector.
