The government is likely to increase profit margins of oil marketing companies (OMCs) and dealers’ commission by 16 per cent without completion of a market study as was promised last year as oil prices continue to decline.
According to a report by Dawn, the ministries of finance and planning and the Oil and Gas Regulatory Authority (Ogra) are currently examining a formal proposal, moved by the energy ministry’s petroleum division, before a meeting of the Economic Coordination Committee (ECC) of the cabinet takes a final decision.
The newspaper’s report claims that the petroleum division had proposed 45 paisa increase in OMC’s margin on every litre of both petrol and high speed diesel (HSD). It has also recommended 58 paisa per litre increase in petrol and 50 paisa on HSD.
The OMCs would now get Rs3.26 per litre margin on both products. The dealers would earn Rs4.28 per litre commission on the sale of petrol and Rs3.62 on HSD.
The 16pc increase, according to the petroleum division, has been worked out on the basis of consumer price index between June 2019 and October 2020.
