The Oil Marketing Association of Pakistan (OMAP) has urged Prime Minister Shehbaz Sharif to immediately meet industry stakeholders, warning that financial strain and operational challenges are putting pressure on the country’s downstream petroleum sector.

In a letter to the prime minister, OMAP Chairman Tariq Wazir Ali said emerging oil marketing companies are facing severe liquidity constraints due to a growing backlog of receivables, delayed payments, and rising business costs that are affecting day-to-day operations.

The association highlighted multiple unresolved issues, including delays in Price Differential Claims (PDCs), foreign exchange losses, pending sales tax adjustments, outstanding IFEM-related receivables, delayed margin revisions, and higher financing and digitization expenses.

OMAP warned that these persistent issues are limiting investment in key areas such as storage infrastructure, logistics networks, and retail expansion, weakening the overall fuel supply chain.

The association also raised concerns over the continued circulation of smuggled and undocumented petroleum products, saying illegal fuel is distorting competition by undercutting regulated companies and causing revenue losses for both the government and legitimate operators.

With uncertainty ahead of the upcoming federal budget, OMAP cautioned against additional taxation on the sector, arguing that frequent policy changes and rising fiscal burdens are discouraging long-term investment in an already capital-intensive industry.

It stressed the need for structured engagement between the government and industry to build a stable policy framework that ensures fair competition, protects consumers, and maintains the financial viability of oil marketing companies.