Pakistan's oil marketing companies (OMCs) are facing an acute liquidity crisis as up to Rs107 billion in unpaid price differential claims (PDCs) remains stuck, with industry players accusing the Oil and Gas Regulatory Authority (Ogra) of repeatedly shifting documentation requirements instead of clearing dues.

Industry estimates show the first claim of around Rs27 billion filed in mid-March was only partially settled, while subsequent claims worth Rs70-80 billion remain entirely unpaid. The cumulative exposure has left companies operating on razor-thin margins and struggling to sustain the cash flow.

Officials say the issue is not transparency but unpredictability. Each time OMCs move to comply, Ogra introduces fresh documentation demands – from invoice-level reconciliations to repeated CEO, CFO and auditor certifications – effectively resetting the process. A revised format was circulated as recently as Monday night, with no clarity on whether further changes will follow. "Each time the industry prepares to comply, a new requirement arrives. There is no finishing line in sight," a senior industry source said, noting that some audit firms may refuse involvement as the requirements fall outside of the standard audit scope.

The situation may worsen if Ogra proceeds with a proposal to withhold 10% of PDC payments until tax reconciliation with the Federal Board of Revenue – a move that could lock up another Rs7.4 billion for up to two months.

PDCs arise when the government caps fuel prices below procurement cost and the difference needs to be reimbursed. Delays force OMCs to bridge the gap through borrowing, which adds to the financial strain.

Industry officials warn the crisis could soon translate into fuel supply disruptions if the liquidity continues to erode. The sector has urged the Ministry of Energy to intervene and has called for immediate settlement of dues, a single documentation framework and withdrawal of the proposed move to withhold some of the PDC.