OMCs warn against new OGRA verification rules

Oil marketing companies (OMCs) have raised serious concerns over new verification requirements imposed by the Oil and Gas Regulatory Authority (Ogra) for the release of price differential claims (PDC), warning the move could delay reimbursements and deepen liquidity crisis. In a recent communication to OMCs, Ogra directed companies to submit scanned copies of sales invoices, duly reconciled and certified by their chief executives or chief financial officers, along with verification from external auditors, according to a statement issued on Friday. The regulator stated the step is aimed at ensuring transparency and expediting the processing of PDC claims. However, industry officials argue the conditions are not aligned with practical business and auditing frameworks. "External auditors do not certify individual invoices as part of their standard scope of work," said a senior official at a major OMC. "This requirement is not only impractical but also nearly impossible to implement within a reasonable timeframe." The PDC mechanism compensates OMCs for selling petroleum products at government-controlled prices below cost. According to industry estimates, companies have already financed substantial amounts, about Rs205 per litre on diesel and Rs100 per litre on petrol, in recent months. With reimbursements now linked to extensive documentation and multi-tier verification, companies fear prolonged delays in recovering these funds. "OMCs are already under severe cash pressure," said another executive. "We have maintained supply despite heavy financial exposure, but further delays in PDC payments could impact operational sustainability." Industry players also pointed out that audit firms are unlikely to undertake invoice-level verification, as it falls outside conventional auditing practices.