Pakistan’s 500 dormant petrol pumps, which had not operated for the entire year, have resurfaced claiming to have sold thousands of liters of oil in March-April and submitted price differential claims (PDCs). The acting chairman of the Oil and Gas Regulatory Authority (OGRA) made this startling revelation while briefing a Senate panel on Monday.
The Senate Standing Committee on Cabinet Secretariat met under the chairmanship of Senator Rana Mahmood Ul Hassan to consider the “Civil Servants (Amendment) Bill, 2026”, review OGRA’s regulatory framework, discuss consumer complaints, management pay scales, price differential claims, and issues relating to oil marketing companies (OMCs).
Dead Pumps Claim Sales, Lack Electricity Bills
According to the acting chairman OGRA, the 500 dead petrol pumps had not operated in December, January, or February. However, they resurfaced claiming to have sold thousands of liters of oil in March-April. When the regulator asked them to provide electricity bills to check routine operations, they responded that they were operating on solar power and not connected to the national grid.
The committee discussed allegations regarding the transfer of bonded petroleum products by certain OMCs, resulting in losses of billions of rupees to the national exchequer. While refraining from discussing matters pending before the courts, members were informed that the Federal Board of Revenue (FBR) is digitizing its systems and conducting audits to determine financial losses. OGRA had identified irregularities and referred the matter to the Federal Investigation Agency (FIA) for investigation.
Tax Evasion and Fluctuating Levy Rates
While briefing the committee on tax evasion by oil companies, a Customs official informed the committee that during the US-Israel conflict with Iran, there were huge fluctuations in the petroleum levy rates. Information had been received about delayed payments by some companies. Most oil companies were involved in the practice of selling through dealers and paying duties and taxes later. “The money that should have gone to the treasury upfront was being paid at the end, as oil companies had lifted product and made payments after levy rates decreased,” the official added.
“Carrying goods without paying duties was a violation of the law,” the official said, adding that investigations had been ongoing since September 2025. A high-level Customs committee had been formed for analysis of oil transportation. A proposal for a dashboard was made to keep the situation visible. Revenue losses were being examined, and a 5-year audit of oil companies would be conducted with action to follow.
OGRA Summons Companies over Claims
The committee was informed that OGRA had summoned oil companies over price differential claims. Discussions were to be held on PDCs and other matters. OGRA asked for written recommendations on claims. The acting chairman OGRA said they wanted to close the claims matter and that no company had yet submitted a complete case. He asked oil companies to submit sales documents.
An Oil Companies Advisory Council (OCAC) representative said bank statements for 18 months and electricity bills were being demanded by OGRA and highlighted concerns over cumbersome documentation requirements. He warned that delayed payments could create supply challenges during the upcoming harvesting season. “Give us our money, let us survive,” the representative said, cautioning against a supply chain disruption if the matter is not resolved. He noted the harvesting season (October-November) was approaching without planning. Usually planning for the harvesting season is done months in advance. During the season, companies would be unsure whether to import oil or whether they would get paid.
Committee Directs OGRA to Settle Issues
The chairman OGRA assured the committee that consultations with OMCs would be held to resolve the matter. The committee directed OGRA to engage with the industry, settle the outstanding issues, report back to the committee, and ensure that interest earned on delayed PDC payments should be passed on to the OMCs.
The committee also examined the Civil Servants (Amendment) Bill, 2026, raising questions regarding deputations extending beyond the prescribed five-year limit and the need to regulate deputation and absorption policies. The secretary Establishment Division assured members that the deputation rules and policy would be reviewed. After deliberation, the committee unanimously approved the government bill.
During a briefing on management, special, and project pay scales, members criticized the incomplete information provided and questioned the necessity of filling several long-vacant positions on special pay structures when their functions were already being performed. The committee deferred the agenda item and directed the relevant authorities to submit comprehensive data and detailed responses to the issues raised.
