Dealers and OMCs
ISLAMABAD: The Cabinet’s Economic Coordination Committee (ECC) has approved a gradual increase in the margins for petroleum dealers and oil marketing companies.
The ECC has increased their margins from Sept 15. The Ministry of Energy initiated the decision and submitted a relevant summary.
The ECC has chosen to boost the margins for petroleum dealers on both MS and HSD by Rs1.64 per liter.
ECC approves margins for dealers and OMCs.
Furthermore, the ECC raised the OMCs’ margins on MS and HSD by Rs1.87 per liter, starting from Sept 15, 2023.
After extensive deliberation, the ECC has determined that the Oil and Gas Regulatory Authority (OGRA) will be responsible for setting these margins. The margins to be based on OGRA’s systematic mechanism. It will take into account PSO’s operating costs for OMC and dealers to ensure efficiency and adherence to timelines.
Additionally, the ECC turned down the PIA’s request for a provision of Rs 23 billion. ECC also rejected the deferral of Rs 1.3 billion per month to the Federal Bureau of Revenue (FBR).
PIA also sought deferral of loans and interest amounts until the finalization of the restructuring plan. However, the ECC rejected all the requests of the PIA.
Moreover, the Ministry of Aviation presented a summary on “Financial support for PIACL & its Restructuring.”
The Aviation Secretary provided a comprehensive briefing to the chair regarding PIA’s financial burdens, liabilities, and the imperative need for organizational restructuring.
The ECC scrutinized the restructuring plan’s timelines and costs, ultimately deciding to establish a distinct committee tasked with evaluating PIA’s restructuring plan.
Additionally, it was resolved that the Finance Division and the State Bank of Pakistan would provide support to PIA in addressing its financial challenges. This will be done once a concrete restructuring plan for the airline is finalized.
