Oil marketing companies (OMCs) have raised concerns about new verification requirements introduced by the Oil and Gas Regulatory Authority (OGRA) for processing price-differential claims (PDC), warning that the move could delay reimbursements and worsen the sector’s liquidity challenges.
In a recent communication, OGRA directed OMCs to submit scanned copies of reconciled and certified sales invoices, signed by their chief executives or chief financial officers.
The regulator also asked companies to obtain verification from external auditors before submitting PDC claims.
OGRA said the new requirement aims to improve transparency and speed up the processing of subsidy claims.
However, industry representatives argue that the conditions do not align with standard business and auditing practices.
A senior official at a major oil marketing company said external auditors do not normally certify individual invoices as part of their audit scope, making the requirement difficult to implement.
Under the PDC mechanism, the government compensates OMCs for selling petroleum products at regulated prices lower than their actual cost.
Industry estimates suggest companies have already financed large amounts in recent months, around Rs 205 per liter on diesel and Rs 100 per liter on petrol.
OMC executives say the additional documentation and multi-layer verification process could significantly delay reimbursements, further increasing financial pressure on companies already facing cash flow constraints.
Industry officials warned that prolonged delays in PDC payments could affect the sector’s operational stability, despite companies continuing to ensure fuel supply across the country.
They also noted that audit firms are unlikely to conduct invoice-level verification because such work falls outside conventional auditing practices.
