ECC Allows Another Rs. 68.74 Billion to Absorb Petroleum Price Differentials

The Economic Coordination Committee (ECC) has approved another supplementary grant of Rs. 68.74 billion for the disbursement of Price Differential Claims to Oil Marketing Companies and Refineries for the month of April 2022 and to meet the shortfall for the last month. Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the ECC of the Cabinet on Tuesday. Petroleum Division submitted a summary for reimbursement of Price Differential Claims (PDCs) of Oil Marketing Companies (OMCs) and Refineries. The price differential is to be paid to the Oil Marketing Companies/Refineries by the Government as a subsidy in the wake of the Government’s decision to keep the petroleum products’ prices stable. The ECC after discussion approved the supplementary grant of Rs. 68.74 billion for disbursement of PDC to OMCs/Refineries for the month of April 2022 and to meet the shortfall for the month of March 2022. Due to the continuously rising trend of oil prices in the international market, the quantum of subsidy for the month of April 2022 has been higher than in March 2022.   Further, the previous Government did not consider the PDCs for the 1st fortnight of April 2022. Substantially, the present government has to bear the burden of a higher quantum of subsidy as PDCs of the OMCs. Federal Minister for National Food Security and Research Makhdoom Syed Murtaza Mehmood, Federal Secretaries, and senior officers attended the meeting.