The Federal Investigation Agency has flagged serious flaws in Pakistan’s oil price compensation system, alleging that oil marketing companies (OMCs) received government payments on fuel inventories that were never affected by price hikes.
According to an interim inquiry report prepared by FIA’s Anti-Corruption Circle Karachi under Inquiry No. 43/2026, the existing Price Differential Claim (PDC) mechanism allowed companies to seek compensation based purely on sales volumes without adjusting for cheaper fuel already stored in inventory or petroleum imported before price increases.
Investigators stated that the system ignored whether companies had actually purchased fuel from local refineries or imported petroleum products after revised prices were announced. As a result, OMCs were allegedly compensated even when they incurred no additional procurement costs.
The report alleged that officials of the Oil and Gas Regulatory Authority approved payments through weak verification procedures, failing to properly assess submitted sales data or examine existing stock levels. The FIA said the arrangement indicated possible coordination between regulatory officials and policymakers within the Petroleum Division.
Investigators argued that the policy framework governing compensation unintentionally encouraged hoarding and manipulation of data, enabling companies to claim higher payouts from the government. The inquiry suggested that compensation should instead have been calculated using refinery purchase volumes, since refinery pricing reflects international benchmarks and actual market exposure.
During the investigation, FIA identified two oil marketing companies that allegedly claimed compensation of ₨15.6 million and ₨15.9 million for the March 14–20, 2026 period despite making no refinery purchases or fuel imports during that time. The report also noted that several firms sought compensation far exceeding the financial impact created by refinery price adjustments.
The agency said it is working to identify beneficiaries and examine the alleged nexus between regulators and companies involved in the payments.
The interim findings were compiled after eight days of inquiry, including interviews, interrogations, and financial record analysis. However, proceedings were later halted when the Sindh High Court suspended the inquiry following a legal challenge filed by one oil marketing company.
