OMCs at Odds with Govt Over Fuel Subsidy Claims
Ehtasham Yousaf
Islamabad: Even amid a wartime situation, several oil marketing companies (OMCs) have been accused of engaging in fraudulent practices by claiming government subsidies despite recording no oil sales, officials revealed on Tuesday.
The controversy stems from a subsidy scheme introduced by the government in mid-March, following the escalation of the Middle East conflict.
Prime Minister Shehbaz Sharif’s administration had decided not to pass on the surge in global petroleum prices to consumers. Instead, the government committed to absorbing the price differential between international and domestic fuel rates.
Under this arrangement, payments were to be disbursed to OMCs through the Oil and Gas Regulatory Authority (OGRA). However, Chairman OGRA, Barrister Nabeel Awan, told the Senate Standing Committee on the Cabinet Secretariat that some companies had filed claims despite making no sales.
“Some companies did not even sell oil but still demanded millions of rupees,” Awan informed the committee. He added that the government still faces an additional liability of Rs50–55 billion for just three weeks under the subsidy scheme.
The Senate panel, chaired by Senator Rana Mahmood-ul-Hassan, was further informed that OMCs have collectively claimed over Rs82 billion in subsidies in light of the recent crisis.
Providing a breakdown, Awan said the government had already paid Rs17–18 billion for the first week, Rs15 billion for the second, and Rs18 billion for the third week.
So far, around 40 percent of the total payments for this period have been released. He noted that Rs33 billion for the last two weeks alone represents about 40 percent of the outstanding amount.
The committee expressed serious concern over the alleged irregularities and unanimously recommended strict action against those involved in fraudulent claims.
During the meeting, Senator Aimal Wali also raised the issue of gas shortages in Khyber Pakhtunkhwa. In response, the committee directed OGRA to submit a detailed report on gas load-shedding in the province within three days.
Additionally, the senator highlighted disparities in salaries and benefits among government employees, noting that even Grade IV workers do not receive uniform pay. He pointed out that employees of the Senate Secretariat enjoy significantly higher compensation compared to those in other departments.
Cabinet Secretary Kamran Ali Afzal responded that the Ministry of Finance is responsible for providing details regarding salary structures and any disparities. The committee subsequently directed the relevant authorities to present a comprehensive report on the salaries of all government officials.
