Oil Marketing Companies (OMCs) are stuck with Rs 107 billion in unpaid dues across Pakistan’s petroleum supply chain, raising immediate risks to fuel availability. Industry stakeholders say prolonged payment delays have tightened liquidity and started to disrupt normal fuel supply operations.
OMCs have failed to recover dues from government entities, power sector buyers, and private customers, stretching payment cycles well beyond agreed credit periods. Companies now depend heavily on short-term bank borrowing to finance fuel imports and maintain distribution, which has pushed up financing costs and eroded margins.
The Rs 107 billion receivable backlog has created a liquidity crunch across the supply chain, with refineries facing delayed payments from OMCs and slowing production cycles. Petrol pump dealers have also started reporting supply uncertainty as companies adjust dispatches to manage cash flow pressures.
A senior industry official said companies may cut back imports if the situation persists, warning that the supply chain cannot sustain prolonged funding gaps. Analysts at Topline Securities note that rising circular debt in the petroleum sector continues to weaken balance sheets and increase the risk of selective supply disruptions.
The financial strain has started to affect the entire energy ecosystem, with transporters, logistics operators, and industrial users facing the risk of higher fuel costs and inconsistent availability. Any prolonged disruption could feed into broader inflation and supply chain delays across key sectors of the economy.
For consumers, the immediate impact may appear in the form of longer queues at petrol stations or intermittent shortages if OMCs slow supply to manage liquidity. Businesses dependent on fuel, especially transport and manufacturing, face higher operating uncertainty if payment issues remain unresolved.
Pakistan’s petroleum supply chain operates on tightly linked payment flows between refineries, OMCs, and dealers, leaving little room for prolonged delays. Recurring circular debt and delayed settlements have repeatedly disrupted this balance, and the latest Rs 107 billion backlog highlights the growing financial stress in the sector.