Daily Times

The Oil Marketing Association of Pakistan (OMAP) is committed to transforming the country’s petroleum sector through innovation, transparency, and enhanced safety. In recent meetings with the Chairman of the Oil & Gas Regulatory Authority (OGRA), the Federal Board of Revenue (FBR), and other key officials, we identified a critical issue that is not only damaging the economy but undermining the integrity of our industry: the illegal decanting of smuggled fuel at numerous petrol stations. This illicit activity causes significant economic losses to the nation and erodes the trust between businesses and the public.

In response to this pressing issue, the government, in collaboration with OMAP, has launched a comprehensive digitalization initiative aimed at ensuring greater accountability and efficiency across all petrol stations. I want to use this platform to highlight OMAP’s central role in driving this initiative and emphasize how vital it is for the entire industry to support this effort.

To address fuel smuggling and ensure greater transparency, we have outlined several key actions:

All fuel dispensers must be upgraded to provide real-time data that can be monitored by Oil Marketing Companies (OMCs) and regulatory authorities such as OGRA. By doing this, we will have an accurate, real-time picture of fuel sales across the country, reducing the potential for illicit activities. Any dispenser that cannot be upgraded to meet this requirement must be replaced immediately.

The storage tanks at retail stations will be fitted with real-time stock controllers, allowing fuel levels to be monitored continuously. This will enhance inventory management and help detect discrepancies more quickly.

: To ensure accountability throughout the fuel supply chain, all oil tankers will be equipped with live tracking systems. This will allow stakeholders to monitor their movements, minimizing the risk of illegal fuel being transported across the country.

Fuel depots must adopt digital monitoring systems to track their stock levels. This will ensure greater transparency from the point of fuel arrival at depots to its delivery at retail stations.

The first phase of this initiative is critical. We are urging all OMAP members to upgrade their fuel dispensers without delay. Any dispenser that is not capable of being integrated into the digital system will need to be replaced immediately to ensure full compliance with the new regulations.

To aid in the smooth rollout of this initiative, we require all OMAP members to provide detailed information on the following:

The total number of fuel stations operated by each company, along with their geographic coordinates.
The total number of dispensers at each station.
The types and brands of dispensers currently in use.
This information will help us map out the necessary steps for digitalization and ensure a seamless transition to the new system.

In addition to our efforts on digitalization, OMAP recently partnered with GOREX, a Saudi-based fintech company, to host a seminar titled “Safety with Digitization in the Petroleum Industry using Artificial Intelligence (AI).” The event brought together key stakeholders, including the Chairman of OGRA, Masroor Ahmad, Senior Vice Chairman of OMAP, Tariq Mahmood, and myself, along with industry leaders and CEOs from various oil marketing companies.

The seminar underscored OMAP’s dedication to enhancing safety in the petroleum sector through technology. Speakers shared insights on fire prevention, safety protocols, and the latest trends in using AI to prevent accidents in oil and gas fields. I would like to extend my gratitude to Chairman GO Petroleum, Khalid Riaz, for announcing a contribution of 20 million rupees to support OMAP’s safety initiatives.

AI will play a crucial role in improving reporting mechanisms, detecting risks before they escalate into accidents, and ensuring that safety standards are upheld across the industry. As Chairman of OMAP, I believe that safety and digitization must go hand in hand, and that through collaboration, we can modernize our industry and ensure the well-being of all stakeholders.

The digitalization of Pakistan’s petrol stations is not merely an option—it is a necessity. We must adapt to the demands of the future and embrace technological advancements to ensure transparency, safety, and efficiency. The collaboration between OMAP, OGRA, the FBR, and the government will serve as the foundation of a modern petroleum industry that meets international standards.

OMAP’s role in leading this change is pivotal, and we are committed to working with our members and partners to achieve our shared goals. Together, we can curb illegal fuel decanting, protect the economy, and create a safer and more transparent future for Pakistan’s petroleum sector.

I urge all stakeholders to support this initiative and take the necessary steps to make this digital transformation a success.