It has been learnt that oil marketing companies sales profit margins per liter will soon be increased.The Economic Coordination Committee of the cabinet, which meets here on Tuesday, is expected to increase up to 47 per cent of existing profit margin to oil marketing companies (OMCs) and dealers through an increase in retail petroleum prices.
It has also been learnt that the ECC meeting, to be presided over by Finance Minister Dr Abdul Hafeez Shaikh, would also consider a proposal to impose Rs10 per kg petroleum levy on poor man’s fuel LPG — to jack up prices ahead of winter to boost earnings as a result of increased consumption.
Officials said the petroleum ministry had now suggested to the ECC to allow a 70 paisa per litre increase in dealers’ commission on high speed diesel from the existing rate of Rs1.50. The ministry also proposed to increase dealers’ commission on motor spirit (petrol) by 50 paisa per liter.
The proposal is to raise OMCs’ margin by 48 paisa per litre on petrol and 41 paisa per litre on diesel.
The existing margin of OMCs on petrol is Rs1.50 per litre and that on high speed diesel is Rs1.35. All petrolum marketing companies will get benefit from this especially PSO which is facing severe cash flow problems due to circular debt. It will help to curb overall circular debt problems.
Petroleum Minister Dr Asim Hussain has confirmed that the ECC would take up the proposal to increase compnies margin and dealers’ commission as well.