OCAC seeks review of Rs2.82bn annual fuel freight costs passed on to consumers

The Oil Companies Advisory Council has pressed the Petroleum Division to speed up a review of Special Freight Areas that has been delayed for a long time. Consumers currently pay roughly Rs2.82 billion a year through the Inland Freight Equalisation Margin, which covers freight for these areas. According to Profit, the council argues that better roads may have changed transport routes and reduced the freight costs that are recovered.

The council said the distances used to set these charges may no longer match today's road network and travel conditions. Its last detailed assessment was carried out about three decades ago. It has asked the ministry to help appoint an independent consultant quickly to conduct a full reassessment.

Figures attached to the letter show SFA freight totalled Rs2.826 billion from July 2025 to June 2026 across 422 retail outlets, with Rs1.444 billion linked to HSD and Rs1.382 billion to motor spirit. These areas are supplied from Shikarpur, Quetta, Mehmood Kot, Chakpirana, Faqirabad, Sihala, Juglot and Chitral. The council says it has raised the matter with the Oil and Gas Regulatory Authority and the ministry since 2023. Ogra drafted terms for hiring a consultant and placed a notice for the road survey on March 28, 2025, but the work has yet to start.