Pakistani refineries urge prioritization of local oil production

Pakistan's oil refineries are urging the Oil and Gas Regulatory Authority (Ogra) to focus more on local production instead of relying heavily on imported fuels. They believe that depending on imports increases risks to the nation's energy supply, especially as the country works to recover from financial issues. In a letter to Ogra's chairman, industry representatives emphasized that local refineries are crucial for the country's industrial growth, energy security, and defense needs. They expressed disappointment with Ogra's recent response, claiming it did not align with what was discussed in a meeting held on March 3, 2025, in Karachi. During that meeting, refineries voiced concerns about oil marketing companies (OMCs) not buying the agreed amounts of diesel and gasoline. The refineries are asking Ogra to step in and enforce rules that require OMCs to purchase local products before turning to imports. They argue that this requirement, written into regulations, is essential for the operation of the OMCs. The refineries noted that allowing imports when local products are not being utilized harms both the economy and consumers. Furthermore, the refineries reaffirmed their compliance with Ogra's regulations and stressed the importance of having a reliable supply chain. They welcomed Ogra's efforts to include a "take or pay" clause in contracts with OMCs but noted that such changes must be mutually agreed upon. The refineries believe that a proactive Ogra can help resolve these issues to support local production and ensure the stability of energy supplies.