ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved Rs 68.81 billion supplementary grant for disbursement of price differential claims to OMCs and refineries for the month of April and to meet the shortfall of Rs 1.87 billion for the month of March 2022.
The meeting of the ECC was held under the chair of Finance Minister Miftah Ismail which take up one point agenda of Petroleum Division proposal seeking allocation of fund through supplementary grant to clear the price differential claims of OMCs and refineries.
The meeting was informed that due to continuously rising trend of oil prices in the international market, the quantum of subsidy for the month of April, 2022 has been higher than March, 2022.
The meeting was informed on the summaries of petroleum division, the ECC of dated 7th March 2022 and 16th March 2022 approved allocation of Rs 20 billion and Rs 11.73 billion respectively for reimbursement of price differential claim to OMC and Refineries.
The Petroleum Division further stated in the proposal that as per OGRA has projected that owing to rising trend of oil prices in the international market, the PDC for the first and second fortnights of April 2022 is Rs 31 80 billion and Rs 35.73 billion respectively.
A draft summary with proposal to allocate Rs 67.53 billion for the month of April 2022 was circulated to the Finance for comments and Finance Division supported the OGRA projection of Rs 31.80 billion for the 1st fortnight of April 2022 and did not support allocation for 2nd fortnight due to lack of fiscal space
The ECC was further informed that OGRA vide letter dated 18th April 2022 has now projected PDC for the first and second fortnight of April 2022 of Rs 31.80 billion and Rs 34.44 billion respectively.
In addition, OGRA informed that the amount of PDC provided through supplementary grant for the month of March 2022 has fallen short by Rs 1.87 billion, therefore, the ECC was requested that Rs 68.81 billion may be allocated through supplementary grant for disbursement of PDC to OMCs and refineries for the month of April and to meet the shortfall for the month of March, 2022.
Federal Minister for National Food Security and Research Makhdoom Syed Murtaza Mehmood, Federal Secretaries and senior officers attended the meeting.
