CW Pakistan
  • Legacy
    • Legacy Editorial
    • Editor’s Note
  • Academy
  • Wired
  • Cellcos
  • PayTech
  • Business
  • Ignite
  • Digital Pakistan
  • PSEB
    • DFDI
    • Indus AI Week
  • PASHA
    • CEC Elections 2026
  • TechAdvisor
  • GamePro
  • Partnerships
  • PCWorld
  • Macworld
  • Infoworld
  • TechAdvisor
0
0
0
0
0
Subscribe
CW Pakistan
CW Pakistan CW Pakistan
  • Legacy
    • Legacy Editorial
    • Editor’s Note
  • Academy
  • Wired
  • Cellcos
  • PayTech
  • Business
  • Ignite
  • Digital Pakistan
  • PSEB
    • DFDI
    • Indus AI Week
  • PASHA
    • CEC Elections 2026
  • TechAdvisor
  • GamePro
  • Partnerships
  • Business

Pakistan’s Oil Marketing Companies Call For Cost-Recovery Plan Ahead Of Fuel Station Digitization

  • December 17, 2025
Total
0
Shares
0
0
0
Share
Tweet
Share
Share
Share
Share

Pakistan’s oil marketing companies have urged the government to establish a financially viable cost-recovery mechanism before implementing a nationwide fuel station digitization program, according to a letter shared with Arab News on Wednesday. The Oil Companies Advisory Council (OCAC), representing the country’s downstream oil industry, warned that the initiative could require investments exceeding Rs50 billion, or roughly $178 million. The digitization effort is centered on installing Auto Tank Gauging systems and digital fuel dispensers across all retail outlets to modernize Pakistan’s fuel supply chain.

Auto Tank Gauging systems provide real-time monitoring of underground fuel tanks, helping prevent leakages, theft, and misreporting. Such systems are standard in more regulated energy markets but involve custom-built solutions for each site. OCAC highlighted that implementing these systems nationwide is a complex and costly process, with a single digital dispenser costing approximately Rs2.5 million and an ATG system reaching up to Rs5 million per outlet with two storage tanks. These figures underscore the financial challenge for oil marketing companies, whose retail fuel margins have remained largely stagnant over the past two years.

In a letter dated December 2, OCAC Chairman Adil Khattak urged Pakistan’s federal energy regulator, OGRA, to finalize a clear and implementable framework for compensating companies for the required capital expenditure. The appeal followed a meeting on December 1 in Islamabad where OGRA discussed the rollout of ATG systems and digital monitoring tools with chief executives of oil marketing companies. While supporting the government’s objective of improving oversight at the retail level, OCAC emphasized that implementation should be gradual, recommending a realistic five-year window for the industry to execute the transition effectively.

OCAC also pointed out that each ATG system requires specialized procurement, installation, and calibration, further increasing complexity and costs. Khattak warned that without a confirmed cost recovery framework, companies would be unable to commit to the large-scale financial exposure demanded by the nationwide rollout. He urged OGRA to share the proposed cost-recovery plan as soon as possible and schedule dedicated meetings to understand the industry’s operational constraints. The downstream sector, which includes both local and international firms such as Wafi Energy and Parco Gunvor Limited, stresses that early clarity on cost recovery is essential for planning and financing the modernization effort while maintaining the financial stability of retail operations.

The call by OCAC highlights the challenges of digitizing Pakistan’s energy infrastructure while balancing regulatory oversight and industry sustainability. Proper coordination between the regulator and private companies is expected to play a key role in ensuring that the transition to digital monitoring tools is both feasible and financially responsible, allowing the sector to modernize without undue pressure on operating margins or service delivery.

Follow the SPIN IDG WhatsApp Channel for updates across the Smart Pakistan Insights Network covering all of Pakistan’s technology ecosystem. 

Share
Tweet
Share
Share
Share
Related Topics
  • Auto Tank Gauging
  • digital fuel dispensers
  • fuel station digitization
  • OCAC
  • OGRA
  • Pakistan energy sector
  • Pakistan oil marketing
Previous Article
  • Ignite

Pakistan Launches First Medical Coworking Space For Doctors In Karachi

  • December 17, 2025
Read More
Next Article
  • Digital Pakistan

Smart Electricity Metre Prices Fall By 40 Percent Leading To Rs150 Billion National Savings

  • December 17, 2025
Read More
You May Also Like
Read More
  • Business

DWP Technologies Becomes Apple Authorized Reseller In Pakistan Working With Distributor GNEXT

  • CWPakistan
  • October 20, 2026
Read More
  • Business

Pakistan IT And Telecom Exports Reach 1.25 Billion Dollars as September Earnings Climb to 435 Million Dollars

  • CWPakistan
  • October 19, 2026
Read More
  • Business

Pakistani Freelancers Earn Record 197 Million Dollars In September As Digital Exports Surge

  • CWPakistan
  • October 19, 2026
Read More
  • Business

LUMS and Zhejiang University Launch Executive Immersion Programme on Chinese Business and Innovation

  • CWPakistan
  • October 17, 2026
Read More
  • Business

OGDCL Partners With PINSTECH To Explore Lithium And Critical Minerals In Pakistan

  • CWPakistan
  • October 17, 2026
Read More
  • Business

Pakistan Targets 100 Billion Dollars Exports by 2035 Through Digitalisation, ICT Services, Industrial Innovation and Trade Reforms

  • CWPakistan
  • October 16, 2026
Read More
  • Business

Millat Signs Cooperation Agreement With China XDAO For Battery Technology Transfer And Electric Motorcycle Localization

  • CWPakistan
  • October 16, 2026
Read More
  • Business

Mari Energies Partners With Norway EMGS For Offshore Exploration In Pakistan

  • CWPakistan
  • October 16, 2026
Trending Posts
  • UAE Advances 6G Roadmap As Regional Conference Examines Future of AI-Powered Networks
    • October 20, 2026
  • Punjab IT Board Announces New Job Opportunities Across Technical and Administrative Roles
    • October 20, 2026
  • Boltay Huroof Conference To Address Inclusive Education And Accessibility Challenges For Students With Disabilities
    • October 20, 2026
  • NUST To Host 5th International Conference To Explore Statistics, Data Analytics and AI Research 
    • October 20, 2026
  • NUST Physicist Explores Astronomy and Deep Space Research During Fellowship Visit to China
    • October 20, 2026
about
CWPK Legacy
Launched in 1967 internationally, ComputerWorld is the oldest tech magazine/media property in the world. In Pakistan, ComputerWorld was launched in 1995. Initially providing news to IT executives only, once CIO Pakistan, its sister brand from the same family, was launched and took over the enterprise reporting domain in Pakistan, CWPK has emerged as a holistic technology media platform reporting everything tech in the country. It remains the oldest continuous IT publishing brand in the country and in 2025 is set to turn 30 years old, which will be its biggest benchmark and a legacy it hopes to continue for years to come. CWPK is part of the SPIN/IDG Wakhan media umbrella.
Read more
Explore Computerworld Sites Globally
  • computerworld.es
  • computerworld.com.pt
  • computerworld.com
  • cw.no
  • computerworldmexico.com.mx
  • computerwoche.de
  • computersweden.idg.se
  • computerworld.hu
Content from other IDG brands
  • PCWorld
  • Macworld
  • Infoworld
  • TechAdvisor
CW Pakistan CW Pakistan
  • CWPK
  • CXO
  • DEMO
  • WALLET

CW Media & all its sub-brands are copyrighted to SPIN-IDG Wakhan Media Inc., the publishing arm of NCC-RP Group. This site is designed by Crunch Collective. ©️1995-2026. Read Privacy Policy.

Input your search keywords and press Enter.