Pakistan’s oil marketing companies are set to post windfall earnings as surging global oil prices and domestic fuel hikes boost margins, a top brokerage house said in a report on Friday, even as the sector grapples with mounting government receivables and potential demand slowdown. The expected gains follow a sharp rise in global petroleum prices […]
OMCs
Conflict arises over “Take or Pay” clause in Pakistan’s oil sector
A conflict has erupted between local oil refineries and Oil Marketing Companies (OMCs) over a proposed “Take or Pay” clause. OMCs strongly oppose this move, fearing it will lead to liquidity crises, supply disruptions, and market exits. The Oil Marketing Association of Pakistan (OMAP) argues that this clause would favor large players while pushing smaller […]
Oil Sales increase by 14 percent YoY in May
Sales’ volumes of oil marketing companies (OMC) continued on a growth trajectory with an increase of 14 percent YoY for May’21 due to a strong rebound post COVID-19 related economic slowdown at 1.7 million tons, while sequentially, volumes grew by 1 percent MoM despite extended Eid holidays during May’21. Shahrukh Saleem, a senior analyst at […]
IPI proposes review of ‘turnover tax’ on oil marketing companies
ISLAMABAD: Islamabad Policy Institute (IPI) proposed a review of the ‘turnover tax’ on the oil marketing companies in the upcoming budget for FY-2021-22, saying the tax is affecting viability of petroleum industry’s downstream sector. The think tank launched a report on the turnover tax, which contends that the tax was discriminatory, arbitrary and against the […]