Govt Increases Margins of Dealers and OMCs, Jacks Up PDL on Diesel

Besides retaining the ex-refinery prices of both high-speed diesel (HSD) and MS petrol until November 15, the federal government has jacked up the petroleum levy on Hi-Speed Diesel (HSD) by Rs. 5 to Rs. 60 per liter. The government has enhanced dealer profit margins by Rs. 0.41 per liter with an additional rise in OMC margins of Rs. 0.47 per liter on petrol and diesel, respectively. The Inland Freight Equalization Margin (IFEM) on MS has also been increased by 42.5 percent to Rs. 7.71 per liter. The PDL remains intact at Rs. 60 per liter in line with the demands of the International Monetary Fund (IMF). The dealer and OMC margins for HSD now stand at fixed rates of Rs. 8.64 per liter and Rs. 8.12 per liter, respectively. Meanwhile, the rates revision brings the dealer and OMC margins for MS at Rs. 8.64 per liter and Rs. 7.87 per liter. Sales tax on both fuel grades remains at zero percent. These changes in taxes and margins on fuel are part of the caretaker government’s efforts to manage the fiscal situation while addressing concerns of the IMF. The retention of the previous rates at Rs. 283.38 per liter for petrol and Rs. 303.19 for diesel, combined with the adjustments in petroleum levy for HSD and margins for both grades, may offer extended relief for consumers across the country.