ISLAMABAD: The Islamabad High Court has sought a detailed report from the Oil and Gas Regulatory Authority over a restriction on new oil marketing company licences that dates to 2019, asking the regulator to explain its current status and progress on revised licensing criteria.
Justice Arbab Muhammad Tahir issued notices while hearing a petition filed by Fuelex Petroleum Pvt Ltd challenging OGRA’s refusal to entertain its application for an oil marketing company licence.
The case concerns a January 9, 2019 direction under which OGRA was asked not to accept fresh applications from local investors until revised criteria for establishing oil marketing companies were approved.
The restriction has remained in place for nearly seven years, according to the petitioner’s case before the court.
Fuelex Petroleum is challenging an April 14, 2026 letter in which OGRA declined its OMC licence application on the basis of the federal government’s restriction.
The company argues that its application should instead have been considered under the criteria contained in the Pakistan Oil Rules, 2016. It has also questioned whether a measure introduced as an interim arrangement can continue for an indefinite period.
These are arguments made by the petitioner and have not yet been accepted as findings by the court.
The petition further contends that the 2019 direction allowed applications from foreign investors while local investors remained subject to the restriction. It has raised constitutional and statutory questions over the licensing process and OGRA’s regulatory powers.
During the hearing, the court observed that the issues raised required consideration and directed the respondents to submit reports and paragraph-wise comments.
OGRA has specifically been asked to provide a comprehensive report explaining the current regulatory position and the progress made on revised criteria for establishing new OMCs.
The next hearing is scheduled for October 8.
The court has not struck down the restriction, ordered OGRA to grant Fuelex Petroleum a licence or directed that applications from new locally owned OMCs immediately resume. The current development is a judicial review of the continuing policy and a direction for the regulator to explain it.
OGRA regulates Pakistan’s midstream and downstream oil sector under the OGRA Ordinance and the Pakistan Oil (Refining, Blending, Transportation, Storage and Marketing) Rules, 2016. Its responsibilities include licensing and oversight across parts of the petroleum supply chain.
The case could clarify how the long-running restriction interacts with that regulatory framework, but the outcome will depend on subsequent proceedings and the responses submitted by OGRA and other respondents.
For now, the practical position remains unchanged: the court is examining the seven-year licensing freeze and has asked OGRA for a report by the October 8 hearing.