Pakistan’s oil industry has formally rejected the Oil and Gas Regulatory Authority’s (OGRA) deadline to digitally integrate more than 32,000 fuel storage and retail facilities, calling the plan unrealistic and financially unworkable.
The Oil Companies Advisory Council (OCAC) and the Oil Marketing Association of Pakistan (OMAP) jointly wrote to OGRA and the Petroleum Division, warning that the project would cost the sector around Rs. 55 billion without any framework for cost recovery.
Industry representatives described the regulator’s instructions as “dictatorial”, stating that the mandated six- to twelve-month implementation window is impossible to meet.
According to executives who attended a meeting chaired by OGRA’s Chairman Masroor Khan, companies were told to digitally integrate 600 installations by January 31, 2026, and to complete full countrywide integration by January 31, 2027. The system, known as Auto Tank Gauging, would connect 16,000 retail pumps and other facilities to a central dashboard tracking every litre of fuel.
Industry officials say they were not allowed to present practical concerns during the meeting. One executive claimed the OGRA chairman insisted that the deadline reflected the prime minister’s vision, telling companies they “have to comply.”
Soon after the meeting, OCAC and OMAP held an emergency internal session and agreed that they could not accept the regulator’s terms.
A joint delegation then met Petroleum Minister Ali Pervaiz Malik and outlined their objections. According to participants, the minister advised OGRA to address industry concerns while pursuing modernization of the sector.
Executives stressed that while they support digital reforms, the required technology is specialized, custom-built and not locally available. Each Auto Tank Gauging system must be engineered for specific tank dimensions, requiring long manufacturing and calibration timelines.
The OCAC also pointed out that oil marketing margins have been frozen for two years, leaving companies unable to absorb major capital expenditure. They noted that they have already paid millions toward a separate track-and-trace system run by the Punjab Information Technology Board, which has yet to deliver results.
In its letter, OCAC said the OGRA meeting “proceeded as a monologue,” and multiple requests to present industry data and technical feedback were ignored.
The association has urged the regulator to adopt a phased rollout with a clear cost recovery mechanism rather than overnight implementation.
