OMCs Warn of Financial Strain Amid Mandatory Refinery Quotas

Pakistan’s oil marketing companies (OMCs) are warning of financial risks due to a proposed ‘Take or Pay’ clause by Ogra, requiring them to buy fixed fuel quotas from refineries or face penalties. While aimed at reducing imports and supporting local refineries, OMCs argue it shifts financial burdens onto them, threatening smaller companies and market competition. This comes as fuel prices are expected to drop. The policy, though beneficial for refineries, could destabilize the petroleum sector by increasing financial strain on OMCs.