ISLAMABAD: Pakistan’s major oil refineries this week jointly urged the country’s energy regulator to step in and limit fuel imports, warning that excessive reliance on overseas supplies is undermining domestic refining operations and threatening the stability of the national oil supply chain.
In a letter sent to the Oil and Gas Regulatory Authority (OGRA), the chief executives of Attock Refinery Limited, Pakistan Refinery Limited, National Refinery Limited, Pak-Arab Refinery Limited and Cnergyico PK said current regulatory decisions were allowing imported petroleum products to displace locally refined fuel, despite rules requiring domestic output to be prioritized.
OGRA is Pakistan’s federal regulator responsible for overseeing oil and gas markets, including licensing, pricing frameworks and supply planning. The dispute comes as Pakistan, which imports most of its crude oil and refined fuel, seeks to balance energy security concerns with cost pressures and foreign exchange constraints.
“As clearly stipulated in Rule 35(g) of the Pakistan Oil (Refining, Blending, Transportation, Storage, and Marketing) Rules, 2016, the upliftment of locally produced refinery products must be prioritized before any imports are considered,” the refineries wrote in a letter dated Dec. 10. “Unfortunately, the excessive imports allowed by OGRA have worsened the situation on ground.”
Rule 35(g) requires that fuel produced by Pakistan’s refineries be taken up by oil marketing companies before additional imports are approved, a provision designed to protect local refining capacity and ensure steady utilization of plants that are critical to national supply.
The refineries warned that continued preference for imports could disrupt operations, reduce refinery utilization rates and weaken Pakistan’s ability to respond to supply shocks, particularly for products such as aviation fuel and diesel. They called on OGRA to take “urgent and proactive intervention” to ensure timely off-take of locally produced fuel.
Pakistan’s refining sector has long struggled with aging infrastructure, limited upgrading and thin margins, while imports are often seen as cheaper or more flexible in the short term. However, industry officials argue that over-reliance on imports increases exposure to global price volatility, shipping disruptions and foreign exchange pressure.
The letter was also copied to the federal minister for energy, the secretary of the petroleum division and the director general of oil, indicating the issue has been escalated beyond the regulator to senior policymakers.
Energy analysts say the dispute underscores broader tensions in Pakistan’s energy market, where policy decisions must balance consumer prices, refinery survival and long-term energy security. Any regulatory shift could affect fuel availability, refinery investment plans and the country’s import bill at a time when Pakistan remains under economic strain.
OGRA has not yet commented on the letter.
