Oil, Gas and Refinery Sectors - updates

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OGRA moves to real-time digital tracking of petroleum stocks​

Regulator to link OMCs and refineries with Enterprise Resource Planning Systems and monitor stocks through Automatic Tank Gauging sensors



The Oil and Gas Regulatory Authority (OGRA) is developing a digital system to obtain real-time petroleum data directly from oil marketing companies (OMCs) and refineries through Enterprise Resource Planning (ERP) systems and monitor stock levels using Automatic Tank Gauging (ATG) sensors.

According to official documents, the initiative is aimed at improving the accuracy, reliability and timeliness of petroleum stock and supply data for better planning and monitoring of the supply chain.

OGRA has already developed the digital platform for supply-chain visibility, while integration of oil pipelines with ERP systems is under way and is expected to be completed by the end of September 2026.


A key milestone is the direct collection of data from OMCs and refineries through their ERP systems, along with stock positions generated through ATG sensors.

The system is expected to improve the quality and timeliness of information used to assess petroleum product requirements and monitor supply-chain operations.

Currently, OGRA monitors petroleum stock availability but does not have a dedicated real-time ERP system for tracking customs-bonded stocks.

Customs-bonded stocks, including duty-paid and non-duty-paid petroleum stocks, are managed by Pakistan Customs/Federal Board of Revenue (FBR) under the Customs Act, 1969.


The digitisation project will also facilitate FBR and Pakistan Customs by providing access to more timely petroleum stock data. OGRA has already provided FBR/Customs access to its digital platform.

Why Pakistan is doing this​

The primary drivers for this initiative are to end the "black market" for fuel and overcome the limitations of manual, fragmented reporting. Key reasons include:

• Curbing Smuggling and Theft: For years, Pakistan has struggled with massive leakages in its fuel supply chain. Intelligence reports have indicated that millions of liters of petroleum are smuggled into the country daily, leading to annual revenue losses estimated in the hundreds of billions of rupees.
• Moving Away from Manual Reporting: Currently, regulators rely on periodic, manual reports from oil marketing companies (OMCs) and refineries. This outdated method often leaves gaps in data, making it difficult to detect hoarding, artificial shortages, or illegal "off-the-books" inventory movements until a crisis has already occurred.
• Enhancing Regulatory Visibility: The system allows the Oil and Gas Regulatory Authority (OGRA) to gain an "end-to-end" view of the supply chain—from import and production to storage and final retail sale. It specifically addresses the need for better visibility into customs-bonded stocks, which are managed by the Federal Board of Revenue (FBR) and Pakistan Customs.
• Legal Empowerment: The initiative is supported by the Petroleum (Amendment) Act 2025, which amended the original 1934 law to formally authorize the use of IT-based systems for continuous monitoring and to grant enforcement agencies stronger powers to seize smuggled or illegally stored fuel.

What Pakistan expects to achieve​

The government expects this digital transformation to deliver several long-term benefits:

• Revenue Assurance: By tracking every liter of fuel, the government aims to plug leakages that currently cause massive losses in public revenue, helping to secure duties and taxes that were previously bypassed through illicit trade.
• Improved Supply Chain Management: Real-time data will allow for better demand planning and supply management. By identifying disruptions or inventory shortages as they happen, the government can intervene before they escalate into national supply crises.
• Market Transparency and Discipline: The system is expected to increase transparency across the industry, preventing market manipulation and ensuring that retailers and depots comply with licensing and storage regulations.
• Inter-Agency Coordination: By providing the FBR and Pakistan Customs direct access to this digital platform, the government expects to streamline enforcement. Authorities will be able to share information instantly, leading to more effective, coordinated action against fuel smugglers and those involved in adulteration.
• Foundation for Further Reforms: This digitization is seen as a logical step toward a more liberalized and efficient petroleum market, where data-driven regulation replaces administrative discretion.

 

[hydrabadi_arab]

Why Pakistan is doing this​

The primary drivers for this initiative are to end the "black market" for fuel and overcome the limitations of manual, fragmented reporting. Key reasons include:

• Curbing Smuggling and Theft: For years, Pakistan has struggled with massive leakages in its fuel supply chain. Intelligence reports have indicated that millions of liters of petroleum are smuggled into the country daily, leading to annual revenue losses estimated in the hundreds of billions of rupees.
• Moving Away from Manual Reporting: Currently, regulators rely on periodic, manual reports from oil marketing companies (OMCs) and refineries. This outdated method often leaves gaps in data, making it difficult to detect hoarding, artificial shortages, or illegal "off-the-books" inventory movements until a crisis has already occurred.
• Enhancing Regulatory Visibility: The system allows the Oil and Gas Regulatory Authority (OGRA) to gain an "end-to-end" view of the supply chain—from import and production to storage and final retail sale. It specifically addresses the need for better visibility into customs-bonded stocks, which are managed by the Federal Board of Revenue (FBR) and Pakistan Customs.
• Legal Empowerment: The initiative is supported by the Petroleum (Amendment) Act 2025, which amended the original 1934 law to formally authorize the use of IT-based systems for continuous monitoring and to grant enforcement agencies stronger powers to seize smuggled or illegally stored fuel.

What Pakistan expects to achieve​

The government expects this digital transformation to deliver several long-term benefits:

• Revenue Assurance: By tracking every liter of fuel, the government aims to plug leakages that currently cause massive losses in public revenue, helping to secure duties and taxes that were previously bypassed through illicit trade.
• Improved Supply Chain Management: Real-time data will allow for better demand planning and supply management. By identifying disruptions or inventory shortages as they happen, the government can intervene before they escalate into national supply crises.
• Market Transparency and Discipline: The system is expected to increase transparency across the industry, preventing market manipulation and ensuring that retailers and depots comply with licensing and storage regulations.
• Inter-Agency Coordination: By providing the FBR and Pakistan Customs direct access to this digital platform, the government expects to streamline enforcement. Authorities will be able to share information instantly, leading to more effective, coordinated action against fuel smugglers and those involved in adulteration.
• Foundation for Further Reforms: This digitization is seen as a logical step toward a more liberalized and efficient petroleum market, where data-driven regulation replaces administrative discretion.

Final nail in the coffin of Iranian smuggled oil. More official sales, more tax revenue.

 

[ghazi52]

Govt cuts diesel price by Rs32.63, raises petrol by Rs2.97 for Aug 20​

HSD will now cost Rs363.06 per litre, while petrol has been fixed at Rs337.51

Web Desk
August 19, 2026

Petroleum Minister Ali Pervez Malik addresses a press conference alongside Information Minister Attaullah Tarar on Thursday. SCREENGRAB

The federal government on Wednesday decreased the price of high-speed diesel (HSD) by Rs32.63 while increasing the price of petrol by Rs2.97 per litre for Aug 20.

According to a notification issued by the Petroleum Division, the price of petrol has been fixed at Rs337.51 per litre, while HSD will cost Rs363.06 per litre after the reduction.

The latest revision came hours after Petroleum Minister Ali Pervez Malik said refineries had accepted the government’s request for a significant reduction in diesel prices and that the Oil and Gas Regulatory Authority (Ogra) would announce a cut of around Rs30-32 per litre after completing its calculations.

“The refineries have accepted the government’s request and decided to make a significant reduction in diesel prices. You will see a significant reduction of Rs30-32 within the next few moments, which OGRA will announce after completing its calculations,” said Malik while addressing a press conference alongside Information Minister Attaullah Tarar.

Malik said the government was fully aware of the difficulties and hardships being faced by people because of the war and was making every possible effort within its limited resources to ease their burden.

 

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“Despite being under the IMF programme, the government has used more than Rs100 billion to shield the people from these difficulties. Consultations were held with the provincial governments and, in addition, you have seen the rollout of targeted subsidies,” he said, referring to the measures taken by the government since the beginning of the war in the Middle East.

He assured the public that the difficult period would eventually end and said the government would make full use of whatever fiscal space was available to ensure supplies and provide relief to the people.

Malik also referred to the rising price of diesel around the world, saying the crack margin — the difference between the price of refined products and crude oil — for diesel had once again reached $60-70.

 

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Pakistan's refinery upgrade plan moves forward with planned $5bn investment​

Pak-Arab Refinery Company agrees to proceed with a $600 million green fuel project​

Khalid Mustafa

• Refineries plan investment in green fuel, other projects.
• Govt finalising upgradation deals for local refineries: official.
• Agreements likely to be signed at high-level ceremony.

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ISLAMABAD: Pakistan's refinery modernisation drive is finally gaining momentum, as five domestic refineries plan to invest $4.5 billion to $5 billion in green fuel, bottom of barrel, capacity expansion and related projects.

In a major breakthrough, Pak-Arab Refinery Company (Parco), the country's largest refinery, has agreed to proceed with a $600 million green fuel project after taking considerable time to determine the scope and nature of its upgradation, according to The News.

Parco, a joint venture between Pakistan and the United Arab Emirates with a 60:40 shareholding structure, had commissioned two studies to assess the most suitable upgrade option. The management has informed the government that it will sign the upgradation agreement within the stipulated timeframe.

A senior Petroleum Division official, privy to the development, told The News that the government is finalising the agreements for all local refineries, which are expected to be signed simultaneously at a high-level ceremony in the presence of Prime Minister Shehbaz Sharif.

Under the recently amended Brownfield Refineries Upgradation Policy, refineries are required to sign implementation agreements within 45 days, compared with the earlier 60-day deadline.

 

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According to the official, Parco has already brought down its furnace oil share from around 20% to 14% through various operational initiatives. With implementation of the green fuel project, furnace oil production is expected to decline further to 10% to 11% in the first phase, while the second phase envisages eventually eliminating furnace oil production altogether.

The official said Parco had opted for the green fuel project rather than a standalone bottom of barrel project.

Under the approved refinery policy, Parco will have to shift completely to Euro-V specifications from its current Euro-III. Its motor gasoline production is projected to increase from around 3,678 tonnes per day to 4,023 tonnes per day while diesel production is also expected to rise.

 

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Pakistan Refinery Limited (PRL) has opted for one of the most ambitious upgrade projects among the domestic refineries.

The company plans to invest between $1.8 billion and $2 billion in a bottom of barrel project that is expected to eliminate furnace oil production and substantially improve the refinery's product mix.

The project will also double PRL's crude refining capacity from 50,000 barrels per day (bpd) to 100,000 bpd.

 

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Attock Refinery Limited (ARL) has also confirmed its readiness to sign its upgradation agreement with the Petroleum Division. The ARL MD said the refinery remained committed to the project announced in 2023 under the original Brownfield Refineries Upgradation Policy.

The approximately $600 million project includes a Continuous Catalytic Reformer (CCR), revamp of the Diesel Hydro Desulphurising Unit (DHDS), a Kerosene Hydrotreating Unit, associated tankage and utilities, as well as a biofuel facility required under the amended policy.

The project will enable ARL to meet Euro-V specifications and increase motor gasoline production by around 25%.

 

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Cnergyico Pakistan Limited (CPL), the country's largest private refinery, is also preparing a $1.2 billion investment programme covering green fuel, bottom of barrel, capacity expansion and a new Single Point Mooring (SPM) facility. The CPL currently has crude refining capacity of around 156,000 BPD and plans to increase it to approximately 200,000 BPD. The company's plan consists of three phases.

The first phase focuses on achieving Euro-V/VI petroleum products, with work already underway. The second phase involves the bottom of barrel project, for which studies are in progress, while the third phase covers capacity enhancement and installation of the SPM facility for import and export of crude and finished petroleum products.

Under the government's refinery policy, CPL is projected to increase gasoline production to around 6,500 tonnes per day and diesel production to nearly 11,000 tonnes per day, while sharply reducing furnace oil output.

 

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National Refinery Limited (NRL) is considering a hybrid green fuel and bottom of barrel project estimated to cost between $300 million and $800 million.

The NRL management said the refinery had already achieved production of Euro-V high-speed diesel, while work was continuing to determine the most appropriate upgrade configuration for motor spirit and other finished petroleum products.

The proposed hybrid project is expected to substantially reduce furnace oil production. NRL also plans to increase its crude refining capacity from 50,000 bpd to 70,000 bpd. The refinery's final decision on the scope and configuration of the upgrade project is still being worked out.

 

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Taken together, the proposed investments by Parco, PRL, CPL, ARL and NRL represent a potential $4.5 billion to $5 billion transformation of Pakistan's refining industry.

The amended Brownfield Refineries Upgradation Policy has now put the refineries under a tighter deadline to move from commitments to signed implementation agreements.

 

[ghazi52]

Govt setting up bonded oil storage to facilitate Gulf producers​

LAHORE: Federal Minister for Petroleum Ali Pervaiz Malik has said Pakistan is moving to establish its first...

August 24, 2026
By Hassan Abbas



LAHORE: Federal Minister for Petroleum Ali Pervaiz Malik said that Pakistan is moving to establish its first commercial bonded oil storage system, a facility that would allow Gulf producers and global commodity traders to store petroleum products in the country for onward export, while giving Islamabad access to some of these stocks during emergencies.

The minister said the proposal, designed to position Pakistan as a regional storage and distribution hub and to bolster fuel security, would be placed before the Economic Coordination Committee (ECC) for approval on Monday (today).

He was speaking at a roundtable titled “From State Control to Competition: Rethinking Pakistan’s Energy Sector,” organised by the Business Recorder Forum on Saturday.

 

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Pakistan currently has no dedicated national strategic reserve and depends entirely on commercial oil stocks that could be drawn upon in the event of a major global supply disruption.

Under existing regulations, refineries are required to hold crude oil stocks equal to five to seven days of supply, while oil marketing companies must maintain refined product stocks for twenty to twenty-five days.

The minister said the government also plans to deregulate the gas sector, restructure and unbundle the Sui companies, and move gradually toward a single market-clearing price, under a reform roadmap being developed with technical assistance from the World Bank.

He disclosed that a proposal to separate the transmission, distribution and energy businesses of the Sui Northern Gas Pipelines Limited (SNGPL) and the Sui Southern Gas Company Limited (SSGCL) had been discussed with World Bank officials.

The reforms are intended to foster a more competitive gas market, with the Oil and Gas Regulatory Authority (OGRA) assuming a stronger role in regulation and oversight.

 

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On LNG supplies, Malik said Pakistan would continue close coordination with Qatar to ensure uninterrupted deliveries, adding that efforts were under way to secure additional gas to meet national demand.

Discussing circular debt, the minister said the government was working to contain it without raising tariffs, and that negotiations with the International Monetary Fund (IMF) were continuing, with a resolution mechanism expected once the next IMF mission arrives.

He said the government also intends to replace the existing Liquefied Petroleum Gas (LPG) quota system with competitive bidding to improve transparency, and that five-tonne lots had already been introduced on a pilot basis.

 

[hydrabadi_arab]

Pakistan opens customs-bonded facilities to foreign petroleum suppliers for storage and re-export​

International suppliers to store crude oil, petrol, diesel, jet fuel, fuel oil, LPG and LNG in customs-bonded facilities for later domestic sale or re-export; proposed storage sites will be established at Port Qasim, KPT/Kemari, Hub, Gwadar, Mahmood Kot and Machike, Sheikhupura

The Economic Coordination Committee (ECC) of the federal cabinet has approved a new policy allowing international petroleum suppliers to bring oil and petroleum products into Pakistan, store them in customs-bonded facilities and later choose between selling the stocks in the domestic market or re-exporting them.

The ECC approved the Policy Guideline on Import on Foreign Suppliers’ Account through Customs Bonded Storage Facilities-2026, aimed at attracting foreign investment in petroleum storage and strengthening the availability of energy supplies within the country.

Under the framework, foreign suppliers will retain ownership of petroleum products while they remain in customs-bonded storage. Unlike the conventional cargo-by-cargo import model, suppliers will be able to position inventories in Pakistan without committing the products immediately for domestic consumption.


They may subsequently sell the products to Pakistani oil marketing companies (OMCs) and refineries or re-export them, depending on commercial and market conditions.

The policy covers a range of energy commodities, including crude oil of all grades, motor spirit, high-speed diesel, jet fuel, fuel oil, liquefied petroleum gas (LPG) and liquefied natural gas (LNG).

Proposed locations for bonded storage include Port Qasim, KPT/Kemari, Hub, Gwadar, Mahmood Kot and Machike, Sheikhupura, subject to the required regulatory and safety approvals.

The framework also allows petroleum products held under customs bond to be moved through the national pipeline network between approved bonded storage facilities, refineries, ports and export terminals. This would enable suppliers to maintain inventories at inland locations closer to major consumption centres while retaining the option of re-exporting the products.


Foreign suppliers may participate in the scheme through a registered liaison office, a locally established branch or an incorporated company acting as a consignee. They will be allowed to develop dedicated storage facilities or use licensed public and private bonded-storage facilities.

Duties, taxes, levies, charges and cess will not apply while petroleum products remain under customs bond and are not released for domestic consumption. When the products are sold in Pakistan, the applicable duties and taxes will be paid by the purchaser.

Foreign suppliers will not be required to obtain Sales Tax registration solely for holding petroleum stocks under the bonded-storage arrangement. They will also be permitted to re-export bonded petroleum without prior regulatory approval, subject to restrictions relating to sanctioned goods and items included on the Negative List.

As a safeguard for domestic energy supplies, the Oil and Gas Regulatory Authority (OGRA) will have the first right of refusal over the final 10% of bonded petroleum stocks, with two days to decide whether the supplies should be retained for the domestic market.


The government will also be allowed to access privately owned bonded petroleum stocks during formally declared emergencies, including war, armed conflict, major natural disasters or a documented collapse in domestic supplies.

In such cases, the government will purchase the stocks at the prevailing international market price in foreign currency within 15 days. Foreign suppliers, however, will not be subject to any minimum-stock obligation under the framework.

Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik said the policy could help attract investment, particularly from Gulf countries, for the development of bonded petroleum storage facilities along Pakistan’s coastal areas.

He said foreign suppliers would be able to store petroleum products in Pakistan and re-export them when required, while the country would have access to the available stocks during emergencies or major supply disruptions.


The new framework is intended to create additional petroleum storage capacity within Pakistan without requiring the government or domestic companies to purchase and own all inventories in advance, while also providing foreign suppliers with an option to use Pakistan as a storage and trading location.