The recent decisions by OGRA Chairman Masroor Khan have ignited widespread criticism, with many alleging that his policies prioritize the interests of oil companies and petrol pump owners over the public good. These controversial changes, marked by massive reductions in fines for critical violations like overcharging, theft, and sale of substandard petroleum products, have raised serious concerns about accountability, governance, and public interest.
Masroor Khan, who allegedly secured his appointment as OGRA Chairman through a questionable deal with a private oil company, has drastically slashed fines that were initially imposed to curb malpractice in the oil sector. The penalty reductions, some exceeding 100%, have been labeled as unprecedented and detrimental to public welfare. For instance, the fine for overcharging consumers by more than Rs. 1 per liter has been slashed from Rs. 500,000 to just Rs. 50,000 for the first offense. Similarly, fines for repeated offenses have also been reduced significantly, with the third violation now attracting a fine of only Rs. 150,000 compared to the previous Rs. 1,500,000 penalty.
Such reductions not only weaken regulatory enforcement but also embolden oil companies and petrol pump owners to continue exploiting consumers with little fear of consequences. The penalties for selling substandard petroleum products have similarly been reduced in three phases, starting at just Rs. 100,000 for the first offense—down from Rs. 500,000 in 2020.
The fine structure for overcharging, one of the most common complaints at petrol pumps, has been watered down significantly under Masroor Khan’s tenure. For overcharging by Rs. 0.01 to Rs. 0.49 per liter, offenders now face a mere warning, whereas previously, this would have incurred a substantial fine. For overcharging by Rs. 0.50 to Rs. 0.99 per liter, the fine for the first offense has been reduced to Rs. 15,000, with subsequent fines set at Rs. 30,000 and Rs. 45,000 for the second and third offenses, respectively. This is a stark departure from the Rs. 500,000 fine imposed under the 2020 regulations.
Similarly, penalties for under-dispensing fuel have been reduced drastically. Previously, dispensing fuel short by 11 to 20 milliliters per liter attracted a fine of Rs. 50,000. Under the new policy, this fine has been reduced to Rs. 15,000 for the first offense, Rs. 30,000 for the second, and Rs. 45,000 for the third. For more severe discrepancies of 21 to 30 milliliters per liter, the fines have been capped at Rs. 75,000, compared to Rs. 100,000 to Rs. 300,000 under the older framework.
These changes effectively allow offenders to profit from malpractice, as the fines are often lower than the illicit gains made through overcharging or under-dispensing fuel.
The decision to reduce penalties has already led to a spike in complaints about adulteration, overcharging, and theft at petrol pumps across Pakistan. By weakening regulatory oversight, Masroor Khan’s policies have eroded consumer trust and created a regulatory environment that rewards non-compliance rather than punishing it.
Moreover, the reduced fines do little to deter repeat offenders. For instance, the fine for misbehavior or obstruction during inspections, which previously stood at Rs. 1,000,000, has been drastically reduced. This not only undermines OGRA’s authority but also sets a dangerous precedent for other regulatory bodies.
Masroor Khan’s decisions have drawn criticism not only from consumers but also from within OGRA. A former OGRA official, speaking to a local newspaper, described these measures as unpatriotic and indicative of favoritism toward oil companies and petrol pump owners. The official questioned the motivations behind these policy changes, suggesting they were driven by private deals rather than public interest.
Masroor Khan’s tenure as OGRA Chairman has highlighted the urgent need for greater transparency and accountability in regulatory bodies. Policies that compromise public welfare and favor private interests must be scrutinized and reversed. The government and civil society must demand answers for decisions that disproportionately benefit violators while leaving consumers vulnerable to exploitation.
The actions of OGRA Chairman Masroor Khan have set a dangerous precedent, prioritizing the interests of powerful oil companies over the rights and welfare of ordinary citizens. By drastically reducing penalties for critical violations, Masroor Khan has weakened regulatory enforcement and emboldened malpractice in the oil sector. These decisions must be revisited to restore accountability, protect consumers, and ensure that public welfare remains at the forefront of regulatory policies.
