PM Approves To Increase OMCs Margins, Recover Refineries’ Losses

Staff Report

Islamabad: The Prime Minister has approved an increase in margins of Rs 1.18 per liter for oil marketing companies (OMCs) and dealers and Rs 1.87 per liter from IFEM to recover refineries’ losses.

Premier has also decided that imposition of a 3 to 5 percent GST would be considered in the upcoming budget to rescue refineries from future losses.

The matter was taken up in the Economic Coordination Committee (ECC), but it could not reach a decision.

However, all members of ECC agreed to increase the margins of OMCs and dealers, and a matter was sent to the Prime Minister for endorsement.

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Sources in Ogra said that it had recommended increasing OMCs’ and petroleum dealers’ margins by Rs. 1.13 and Rs. 1.40 per liter, respectively.

The objective was to ensure the sustainability of the oil supply chain. OGRA’s recommendations have been reviewed, and certain amendments have been made in this summary.

Oil Companies Advisory Council (OCAC) had also approached the government to increase margins of OMCs and dealers for sustainability of the petroleum sector.