Pakistan’s leading oil refineries have expressed serious concern over regulatory uncertainty and import-friendly practices by the Oil and Gas Regulatory Authority (OGRA), warning that the situation is discouraging local fuel production and disrupting the national supply chain.
In a joint letter addressed to the Chairman of OGRA after the Product Review Meeting (PRM) held on December 22, 2025, the refineries highlighted the absence of clear regulatory guidance, particularly on the upliftment of high-speed diesel (HSD).
They stated that the PRM ended without firm decisions, leaving diesel sales arrangements for the current and upcoming months unresolved.
The letter was jointly signed by the chief executives of Attock Refinery Limited, Cnergyico PK Limited, National Refinery Limited, and Pakistan Refinery Limited, and was also shared with the Federal Minister for Energy (Petroleum Division), the Secretary of Petroleum, and the Director General Oil.
According to the refineries, the lack of clarity has made it difficult to plan production, manage inventories, and schedule dispatches, especially during periods of falling fuel prices.
They warned that unclear upliftment mechanisms are structurally disadvantaging local refineries while imported products continue to enter the market.
A major issue raised was the commingling of jet fuel imports with HSD cargoes, even when there is no need for diesel imports due to excess domestic supply. The refineries stressed that jet fuel is a separate product with its own demand and should be imported independently.
They also pointed out distortions in jet fuel pricing, noting that domestic prices fall significantly when imports are halted, making Jet A-1 production financially unviable. This, they said, adds to losses already being incurred on furnace oil exports.
To address these challenges, the refineries urged OGRA to issue clear directions on HSD upliftment, stop unnecessary commingling of jet fuel with diesel imports, align jet fuel prices with international benchmarks, and introduce a weekly pricing mechanism to better reflect global market movements and support efficient supply planning.