Refineries have expressed concern over non serious attitude of Ogra over a decision of upliftment of diesel.
This is with reference to the Product Review Meeting (PRM) held on December 22, 2025.
They said in a joint letter to Ogra chairman said that at the outset, we wish to express our serious concerns regarding the professional conduct of the said meeting. Not only did the issues raised remain inconclusive, but the the meeting was also ended abruptly and hastily, ostensibly due to another meeting that OGRA had already scheduled.OCAC reports increasing sales trends for fuel products in Pakistan
In particular, no clear direction was provided by OGRA regarding the upliftment of HSD by OMCs. As a result, diesel sales arrangements for the current month, as well as for the upcoming month, continue to remain uncertain, which complicates supply planning by the local refineries.
In the absence of clear regulatory directions on product upliftment, refineries continue to face structural constraints in aligning production, inventories, and dispatches, particularly during periods of downward pricing trends. This situation affects the orderly functioning of the market and undermines effective supply planning across the value chain.
Moreover, where refinery supply obligations are enforced uniformly across pricing cycles, it is equally important that the associated regulatory framework operates consistently across market conditions. If upliftment mechanisms remain constrained during downward pricing cycles, it would beappropriate to also review mandatory refinery supply obligations during upward pricing trends, so as to avoid policy asymmetry and ensure balanced market outcomes.
With regard to jet fuel imports, we are of the considered view that jet fuel should not be linked with, or commingled with, HSD import cargoes in situations where there is no actual requirement for HSD imports and should be discussed separately.
Jet fuel is a distinct product with an independent/niche market and should therefore be imported separately on the basis of its own demand and supply requirements.
Commingling of jet fuel with HSD cargoes, where HSD imports are not otherwise required due to massive glut situation, should be avoided, as it exacerbates existing upliftment constraints and further complicates product offtake. Under the current
downward pricing trend, such an approach would materially intensify inventory pressures and would undermine effective supply planning, without serving any underlying supply necessity.
We also wish to draw attention to the emerging distortion in jet fuel pricing. When jet fuel cargoes are not imported, domestic jet fuel prices are significantly lower, refineries said.
This divergence is adversely impacting refinery economics thereby making Jet A1 production unviable given that Refineries are already incurring a huge loss on FO exports.
Accordingly, in order to address the issues highlighted above in a holistic manner, we respectfully recommend that Clear regulatory direction be issued on HSD upliftment and sales arrangementsfor the current and upcoming months to enable orderly supply planning by refineries and OMCs.
It said that the linkage and commingling of jet fuel with HSD import cargoes be avoided in situations where there is no actual requirement for HSD imports in the country;l.
Jet fuel pricing be aligned with international market benchmarks and Import Parity Price (IPP), and the existing pricing formula be reviewed and revised to reflect prevailing market dynamics; and a weekly pricing mechanism should be considered to better reflectinternational price movements, reduce pricing lags, and support efficient supply planning across the downstream sector.
Despite numerous meetings, consultations, and extensive exchanges of communication on this matter, OGRA has regrettably failed to make any meaningful progress on this critical issue.
Refineries requested OGRA’s consideration of the above matters and issuance of clear post-PRM policy guidance to support orderly market operations, supply continuity, and a consistent regulatory framework
