Pakistan retailers want compensation

The digitisation mandate in Pakistan is expected to cost fuel retailers over $178 million and the industry warns that the rollout is impossible without viable cost-recovery framework

Pakistan’s oil marketing companies have asked the government to create a “financially viable” cost-recovery mechanism before requiring the industry to digitise fuel stations nationwide.

The program, centered on installing Auto Tank Gauging (ATG) systems and digital fuel dispensers at all retail outlets, is part of a government push to modernize Pakistan’s fuel-supply chain.

ATG systems allow real-time monitoring of underground fuel tanks to curb leakages, theft and misreporting, and are widely used in more regulated markets.

OCAC represents Pakistan’s downstream oil industry and includes both local and foreign firms such as Wafi Energy of Saudi Arabia and Parco Gunvor Limited, a joint venture with Switzerland-based Gunvor Group.

In a letter to OCAC Chairman Adil Khattak asked the Oil and Gas Regulatory Authority (OGRA), Pakistan’s federal energy regulator, to finalize how companies will be compensated for the new capital expenditure.

Full story Retailers seek compensation mechanism as Pakistan orders digital upgrade of fuel stations | Arab News