Govt increases Mogas transport via WOP to 60% from October 1, 2025

ISLAMABAD: The government has decided to increase transportation of Mogas to 60 per cent from 50 per cent through White Oil Pipeline (WOP).
In a letter to Chairman Oil and Gas Regulatory Authority (OGRA), Assistant Director (Logistic), Usman Ali has cited reference to PARCO’s of letter of June 19, 2025 and OGRA’s letter of September 22, 2025 , on the issue of “enhancement of upcountry Mogas transportation via While Oil Pipeline, saying that in line with the gradual transition plan and after careful consideration of the recommendations of the stakeholders, it has been decided that the transportation share of MS via WOP may be increased from the existing 50% to 60% with effect from 1st October , 2025. 3. OGRA is, therefore, requested to issue directives to Oil Marketing Companies (OMCs) for compliance and engaging respective road transporters / contractors to ensure smooth implementation.
OGRA has been requested to issue directives to Oil Marketing Companies (OMCs) for compliance and engaging respective road transporters/ contractors to ensure smooth implementation.
OGRA has already determined the provisional tariff in US dollar;(ii) a regulatory framework shall be developed by OGRA to ensure optimal utilization of pipeline by declaring it a default mode of transportation;(iii) OGRA may be authorized to develop a commercial framework which will require OMCs to commit minimum annual pipeline volumes ;(iv) if committed volumes thresholds will not be met, the shortfall will be covered/ adjusted by OGRA through existing IFEM of each OMC ; and (v) if the committed volumes for the year are below the minimum volumes required, the shortfall will be met through IFEM mechanism of the country. OGRA may be authorized to develop mechanism for enabling above provision.
In June 2025, the ECC deliberated upon the issue in detail and noted that though the project is of vital importance in the overall context of the economy and needs to be initiated at the earliest, however, the dollarized tariff that is being sought for the project is a significant area of concern given the fact that Government is trying to discourage payment of tariff in foreign exchange with fiscal constraints being faced.
The ECC also noted that instead of calculating the Internal Rate of Return for the project on the basis of existing relevant regulations of OGRA, the same has been calculated on assumptions that require further clarity. It was also observed that though foreign investment was welcome, which is only 25% of the total cost and rest was the local component but dollarized tariff was recommended for local partners as well, which was not tenable.
The ECC also took into consideration the observations raised by the Finance Division and Planning, Development and Special Initiatives Division and found that the proposal needs to be resubmitted after due deliberations and calculations in the presence of Ministers of Petroleum and PD&SI. Ends