In a major development during ongoing oil supply concerns and pricing controversies, the government has removed the acting chairman of the Oil and Gas Regulatory Authority (Ogra) and appointed a senior bureaucrat on an interim basis. The decision comes as pressure mounts over fuel pricing transparency, supply chain gaps, and allegations of market manipulation.
Government Announces Immediate Reshuffle
The Cabinet Division issued an official notification on Wednesday confirming that Nabeel Ahmed Awan, a BS-22 officer of the Pakistan Administrative Service (PAS), will take over as acting chairman of Ogra.
Awan currently serves as secretary of the Establishment Division. Authorities have assigned him the additional charge with immediate effect. His tenure will last for three months or until the appointment of a permanent chairman.
Meanwhile, Shahzad Iqbal, who had been serving as acting chairman on a temporary basis, will continue in his role as Member Gas.
Officials described the move as part of urgent administrative changes to address growing concerns in the petroleum sector.
Criticism Triggers Leadership Change
The reshuffle follows strong criticism of Ogra’s performance during a key meeting of the Cabinet Committee on Oil Products Monitoring. The meeting was led by Muhammad Aurangzeb.
Participants expressed dissatisfaction over the regulator’s slow progress on digital automation and supply chain integration. They highlighted serious gaps in real-time monitoring of petroleum stocks and pricing mechanisms.
Sources revealed that Shahzad Iqbal failed to adequately explain delays in automation efforts. He also struggled to defend the regulator’s position during the meeting.
Officials stressed that such inefficiencies have weakened oversight and created room for irregularities in the oil market.
Longstanding Ad Hoc Appointments Raise Concerns
The latest development also highlights a deeper issue. The government has been running Ogra on an ad hoc basis for more than a year.
After the tenure of former chairman Masroor Khan ended, authorities extended his position without legal backing instead of initiating a proper appointment process. Earlier this year, the government again avoided appointing a permanent chairman and assigned temporary charge to Shahzad Iqbal.
Experts believe this pattern has affected institutional stability. It has also slowed down critical reforms needed in the energy sector.
PSO and Ogra Under Fire Over Slow Integration
The controversy intensified last week when both Ogra and Pakistan State Oil (PSO) came under criticism at a high-level petroleum review meeting.
Officials pointed out that both entities failed to fully integrate their supply chain systems. This includes digital tracking of stock levels, transportation, and retail distribution.
Despite clear directives issued weeks ago, progress remained slow. Authorities described the pace as “lethargic” and “insufficient.”
The situation has created serious visibility issues. Regulators struggle to monitor real-time fuel availability and pricing trends across the country.
Government Activates Crackdown on Hoarding
In response to these challenges, the government has decided to involve law enforcement agencies to tighten oversight.
Joint teams will include representatives from the Petroleum Division, Ogra, the Federal Investigation Agency (FIA), and PSO.
These teams will conduct inspections at selected petrol pumps, particularly in Islamabad. Their goal is to improve stock transparency, ensure compliance, and prevent hoarding.
Officials believe hoarding has increased due to weak monitoring and rising international oil prices. Market manipulators appear to have taken advantage of regulatory gaps.
Pricing Controversies Spark Fresh Debate
Another major concern raised during the meeting relates to petroleum pricing. Committee members questioned the diesel pricing formula and identified possible loopholes.
Former petroleum minister Dr Musadik Malik reportedly expressed concern that oil companies may have benefited from windfall gains. He suggested that authorities failed to take timely corrective measures as prices surged.
Finance Minister Muhammad Aurangzeb also voiced frustration. He noted that even PSO, a public sector company, had failed to fully digitize its retail network.
Reports indicate that PSO has achieved around 60 percent integration of its retail outlets. However, private sector companies lag far behind, worsening the overall situation.
Supply Situation Remains Stable Despite Concerns
Despite the administrative crisis, officials maintain that the country’s petroleum supply remains stable for now.
During the meeting, authorities reviewed stock levels, import plans, and refinery operations. They reported that diesel stocks can cover approximately 25 days of demand.
Petrol availability also remains sufficient to meet current consumption needs. Meanwhile, crude oil stocks stand at around 12 days of cover, supported by scheduled imports and incoming shipments.
However, experts warn that continued governance issues could disrupt this stability if not addressed quickly.
Prime Minister Approves Urgent Action
Sources confirmed that the prime minister was briefed on the situation. He approved the leadership change and directed authorities to accelerate reforms in the petroleum sector.
The government aims to restore transparency, strengthen monitoring, and prevent further irregularities in fuel supply and pricing.
The appointment of Nabeel Ahmed Awan signals a temporary but decisive step toward stabilizing the regulator. However, analysts stress that appointing a permanent chairman remains critical for long-term reforms.