Business

Govt plans increase in fuel profit margins

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Web Desk

ISLAMABAD: The federal government of Pakistan is preparing to introduce another adjustment in fuel pricing that could place additional financial burden on citizens.

As per the media reports, a proposal is under consideration to raise the profit margins of Oil Marketing Companies (OMCs) and fuel dealers, increasing their share from the current Rs 1.10 per litre to Rs 1.28 per litre for both petrol and diesel.

The average margin on petrol and diesel is expected to rise by around Rs 1.20 per litre. If approved, the combined increase in OMC and dealer profits may result in an additional burden of approximately Rs 2.40 per litre on consumers.

A summary outlining the proposed margin hike is expected to be presented to the Economic Coordination Committee (ECC) soon. Following ECC approval, the final decision will be forwarded to the federal cabinet for ratification.

At present, citizens are already bearing a margin of Rs 16.51 per litre on both petrol and diesel due to OMC and dealer profits. Sources say that marketing companies currently earn Rs 7.87 per litre, while dealers receive a commission of Rs 8.64 per litre.

Web Desk

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