'Financial strain poses threat to fuel supplies'

Oil marketing companies (OMCs) have played a significant role in keeping the country's fuel supply chain intact, particularly during periods of heightened supply risks, but mounting financial pressures are now putting a strain on the industry's ability to continue financing uninterrupted supplies. The Oil Companies Advisory Council (OCAC), which represents major OMCs, has raised concern over the continued non-resolution of critical financial issues, particularly around Rs66.7 billion in outstanding price differential claims (PDCs) and the long-pending revision in margins. In a letter to the Oil and Gas Regulatory Authority (Ogra), the OCAC said its member companies had consistently supported the government, especially when fuel security and uninterrupted supplies were at stake. Despite growing financial pressures, the OMCs have continued to procure products, arrange import financing, manage inventories and logistics and ensure the availability of petroleum products. The industry body, however, cautioned that this role was becoming increasingly difficult to sustain as companies faced an acute and worsening liquidity crisis. Approximately Rs66.7 billion in PDCs – broadly equivalent to five motor gasoline cargoes – remain outstanding with Ogra. A significant proportion of these claims has been pending since March 2026 despite extensive verification and audit processes.