ISLAMABAD:Oil companies have raised concerns over a proposed audit mechanism for fuel stocks, warning that lack of clarity and reliance on a single firm could delay implementation.
As per details, the Oil Marketing Companies (OMCs) and refineries have sought immediate clarity from the Oil and Gas Regulatory Authority (OGRA) on a proposed framework for monthly audits of petroleum stocks and inventory, highlighting operational challenges and risks of delays under the current plan.
In a letter addressed to OGRA’s Vice Chairman, the Oil Companies Advisory Council (OCAC) referred to the regulator’s directive issued on March 30, 2026, which mandates that all stocks held by OMCs and refineries across the country be audited on a monthly basis. The directive, conveyed following instructions from the Prime Minister, proposes that the audit be conducted by a single firm, PricewaterhouseCoopers (PwC), with a consolidated report to be submitted every month.
Following consultations with its member companies, OCAC stated that the industry broadly supports the government’s objective of enhancing transparency and ensuring accurate reporting of petroleum stocks. However, it raised several key concerns regarding the implementation of the proposed mechanism.
The council pointed out that the directive was issued with very short notice, prompting some companies to already engage audit firms, including KPMG and others, for verification of stocks and inventory. In this context, OCAC has requested OGRA to share a detailed Terms of Reference (TORs) or implementation framework to ensure clarity on the scope, methodology, and reporting requirements, enabling uniform application across the sector.
A major concern highlighted by the industry is the restriction of the audit to a single firm. OCAC warned that given the geographical spread of storage facilities, refineries, and depots nationwide, reliance on only one audit firm could create operational bottlenecks and manpower constraints, potentially delaying the completion of audits.
To address this, the council proposed that top-tier audit firms, particularly those in the ICAP Quality Control Review (QCR) A category, be allowed to participate in the process. This, it argued, would ensure transparency, maintain audit quality, and facilitate timely completion of the exercise.
OCAC emphasized that the industry remains committed to supporting government initiatives aimed at improving transparency in the petroleum sector and is ready to fully cooperate in implementing the audit regime once clear guidelines are provided.
The council further requested that OGRA share the TORs and framework at the earliest to enable smooth and timely compliance. It suggested that the ongoing audits could be completed by currently engaged auditors, while the requirement to engage approved top-tier firms could be implemented from the next monthly audit cycle.
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