August 19, 2022

No relief for masses as govt set to hike OMCs margin

ISLAMABAD: The federal government has decided to increase the margin for oil marketing companies (OMCs) rather than providing relief to the general public following decline in prices of fuel in the international market, ARY NEWS reported.

It has been proposed to increase the margin for the oil companies by 63.04 percent with sources saying that the margin for OMCs on petrol and diesel will be hiked by Rs2.32 per liter to Rs6. “Currently the margin for OMCs on petrol and diesel is Rs3.68 per litre,” they said.

The sources said that the approval in this regard will be taken from the Economic Coordination Committee (ECC) and the federal cabinet.

The Economic Coordination Committee (ECC) on Thursday approved An increase in sales and distribution margins of oil marketing companies (OMCs) and petroleum dealers.

A well-placed source in the finance ministry told ARY News that the ECC meeting presided over by Finance Minister Miftah Ismail here in Islamabad has Accepted the demands of petroleum dealers OMCs by raising their sales margin by Rs7 per liter.

The OMCs and petroleum dealers have been seeking an increase in their sales and distribution margins by around 6 percent on the premise of an increase in the costs of doing business and inflation.

In December 2021, the ECC approved a hike in OMCs margin, increasing the profit margin on petrol and high-speed diesel from Rs2.97 to now Rs3.68. It is an increase of Re0.71 that is pending approval from the cabinet before the revision notification.

Separately, for the petrol dealers, the profit margin on petrol was increased from Re0.99 to now Rs4.90, and on HSD the approved margin is Rs4.13 with an increase of Re0.83.



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