The Oil Marketing Association of Pakistan (OMAP) has accused the Oil and Gas Regulatory Authority (OGRA) of exceeding its legal mandate by demanding data and reports on solvent products — a segment that, according to the industry, falls entirely outside the regulator’s jurisdiction.
In a strongly worded letter addressed to OGRA Chairman Masroor Khan, OMAP stated that the regulator’s repeated demands for information on solvent trade were creating confusion and unnecessary hurdles for refineries and Oil Marketing Companies (OMCs). The letter, numbered 447/OMAP/2025, said OGRA was “interfering in a market that is fully deregulated and operates under a free-market mechanism.”
The association pointed out that OGRA’s authority is limited to licensing, pricing, and technical regulation of regulated petroleum products such as motor gasoline, high-speed diesel, and their associated infrastructure. “Products like solvents and by-products do not fall within OGRA’s regulatory scope,” OMAP wrote. “Repeated instructions to share customer-level or business data for such deregulated products amount to an overreach of legal authority.”
OMAP said that this “unwarranted intervention” was undermining investor confidence in the downstream petroleum sector. The letter noted that solvent-based by-products, though small in scale, have become an important revenue stream for refineries and a key input for various industries. “Instead of facilitating legitimate trade, OGRA’s actions have created fear among distributors and small traders,” the association observed.
Industry insiders told this correspondent that several OMCs and refineries have recently received notices from OGRA seeking data on solvent sales, storage, and clients — despite no regulatory provision authorizing such oversight. They said the move had “startled” industry participants, who fear that policy uncertainty could reverse progress made in curbing smuggling and informal trade in solvents.
OMAP clarified that all solvent products are legally produced, properly taxed, and sold through documented channels. “There is no question of tax evasion or adulteration,” the association asserted. “Our members operate in full compliance with national tax and quality standards.”
The body urged OGRA to withdraw its directives and focus instead on its “core mandate” of ensuring supply stability, technical compliance, and consumer protection in the regulated fuel segment. “If the regulator continues to cross into areas outside its purview, it will only discourage investment and innovation,” the letter added.
OMAP’s chairman, Tariq Wazir Ali, who signed the letter, said the association had also copied the correspondence to all major OMCs and relevant ministries to highlight the growing concern within the petroleum marketing sector. “The solvent business contributes to government revenues and supports local industries,” he said. “Rather than creating obstacles, OGRA should be enabling growth within the deregulated framework.”
Industry sources warned that continued ambiguity in regulatory boundaries could have broader consequences for refinery operations and investment planning. They noted that the downstream oil market, which has only recently begun partial deregulation, requires “stability, clarity, and confidence” — not confusion over what is, and isn’t, under OGRA’s control.
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