The ministry of petroleum and natural resources on Friday sent a summery to the Economic Coordination Committee (ECC) for seeking an increase in the profit margins on petroleum products of oil marketing companies (OMCs) and dealers.
According to media reports, a summery seeking an increase in the profit margins on petroleum products of oil marketing companies and dealers had been moved early this week for the ECC after decrease in petroleum products.
In this regard, consultations with all stakeholders, the Federal Board of Revenue and the Planning Commission have been commenced.
According to the ministry officials, profit margins of marketing companies and dealers had been increased in December last year and the government was of the opinion that “due to reduction in prices of petroleum products, profit margins of oil marketing companies and dealers would also be decline proportionately.”
The ECC has approved the profit margins summery of oil marketing companies and dealers in 2014. According to media reports, oil-marketing companies are earning profit amount Rs3 2 per one litter.
The OMCs have also asked the government to increase margins more than CPI to also account for infrastructure investments. They said lower margins were one of the reasons behind product shortage as some companies violated mandatory storage quotas to avoid inventory losses amid sliding prices.
