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IHC questions 7-year moratorium on OMCs

DAWN • • 1 min read

IHC questions 7-year moratorium on OMCs

Dawn reported that the Islamabad High Court has requested a detailed account from the Oil and Gas Regulatory Authority (Ogra) on a freeze on new oil marketing company licences. The freeze was introduced in 2019 as a stopgap but is said to have continued for almost seven years. The court's request follows a petition by Fuelex Petroleum, which is contesting Ogra's refusal to process its licence application.

The company is challenging an April 14, 2026 letter in which Ogra turned down its application because of the government's moratorium. Its counsel, Yahya Niazi, argued that licensing should follow the Pakistan Oil Rules, 2016, and that the 2019 direction cannot run indefinitely while revised criteria remain unapproved. The petition also raises constitutional points, including due process, property protection and equal treatment before the law.

Justice Arbab Muhammad Tahir has ordered the respondents to file replies, and Ogra has been specifically asked to explain the current regulatory status and progress on revised criteria. The report is due before the next hearing on Oct 8.

At a glance

  • The IHC has sought a comprehensive report from Ogra on the moratorium on new OMCs.
  • The moratorium dates from 2019 and was meant to last only until revised licensing criteria were approved.
  • Fuelex Petroleum challenged Ogra's April 14, 2026 refusal of its OMC licence application.

Originally reported by DAWN

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