Dealers, OMCs margin to go up
27 September, 2012
ISLAMABAD: Already high margin of petroleum dealers and oil marketing companies (OMCs) on the petroleum products is likely to go further up in near future, which would add to the miseries of consumers already bearing the heavy brunt of sky rocketing inflation.
ISLAMABAD: Already high margin of petroleum dealers and oil marketing companies (OMCs) on the petroleum products is likely to go further up in near future, which would add to the miseries of consumers already bearing the heavy brunt of sky rocketing inflation.Well-placed sources privy to the development informed The Nation that petroleum dealers and oil marketing companies have demanded the government to raise their share of margin from Rs1 to 1.50/litre on the petroleum production directly at the cost of consumers during a meeting held in the Ministry of Petroleum and Natural Resources (MP&NR) last week. During the meeting, the influential dealers and oil marketing companies said that due to high inflation it had become impossible for them to run their business on current share of the margin. Succumbing to the pressure of the dealers and OMCs, the MP&NR had assured them of jacking up their share of margin on petroleum products very soon.
Sources further said that increase in the margin of 'mighty' dealers and companies on petroleum products would directly be collected from the hard-pressed consumers. A meeting is scheduled to decide the margin of petroleum dealers and oil marketing companies during next month, sources said, adding that however the final approval regarding increase in margin would be sought from the Economic Coordination Committee (ECC) of the cabinet. It is pertinent to mention here that earlier the ECC had granted approval to increase the margin of petroleum dealers and OMCs in August 2011 and the Petroleum Minisytry had also given them assurances that their share of margin would be jacked up after passing one year. Last year, the dealers' margin on petrol was increased by 50 paisas/litre and on diesel by 70 paisas/litre while the margin of oil marketing companies was increased by 48 paisas/litre and on diesel 41 paisas/litre by the ECC.
Currently, the margin of oil marketing companies (OMCs) on petrol is Rs1.98/litre, high speed diesel (HSD) oil Rs 1.76/litre, high octane blended component (HOBC) Rs 2.15/litre, kerosene oil Rs 1.58/litre while the margin of petroleum dealers on petrol is Rs2.37/litre, Rs2.20/litre on HSD, Rs2.15/litre on HOBC and zero margin on kerosene oil.
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