The Economic Coordination Committee (ECC) of the Cabinet has given the go-ahead for an incremental increase in the margins for fuel dealers and oil marketing companies (OMCs).
Starting from September 15, 2023, the ECC has approved a systematic increase in margins for both fuel dealers and OMCs. These increases will be implemented in four fortnightly installments.
– For petroleum dealers, margins on Motor Spirit (MS) and High-Speed Diesel (HSD) will see an increase of Rs. 1.64 per liter in four installments of Rs. 0.41 per liter.
– Likewise, OMCs will benefit from an increment of Rs. 1.87 per liter on MS and HSD, distributed over four installments of Rs. 0.47 per liter.
To ensure fairness and transparency, the Oil and Gas Regulatory Authority (Ogra) will determine these incremental margins. This decision will be based on a systematic mechanism, taking into account the operating costs of Pakistan State Oil (PSO) for both OMCs and dealers.
The ECC meeting also addressed the financial challenges faced by Pakistan International Airlines (PIA). While the airline requested Rs. 22.9 billion and the postponement of Rs. 1.3 billion per month to the Federal Bureau of Revenue (FBR) and loans and markup amounts; these requests were not approved.
Instead, the ECC decided to form a separate committee to assess PIA’s restructuring plan. The Finance Division and the State Bank of Pakistan will provide support to PIA once a concrete restructuring plan is submitted and meets the committee’s satisfaction.
Additional Budget Approvals
The ECC approved a Technical Supplementary Grant of Rs. 40 billion for various defense service projects and subsidies during the fiscal year 2023-24. It’s important to note that this amount will be disbursed on a case-by-case basis and has already been budgeted for this fiscal year.
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