Oil Marketing Companies Urge Govt to Increase Profit Margins

The Oil Companies Advisory Council has appealed to the government to implement the Ministry of Energy’s decision on the revision of the margins of Oil Marketing Companies (OMCs), pending since 2nd August 2022, on a priority basis. The Advisory Council stated that OMCs play a crucial role in bridging the fuel supply deficit of the country via oil imports. However, the companies are on verge of financial breakdown due to several reasons that include: In August, the Ministry of Energy accepted OMCs’ demand for raising their margins after negotiations with stakeholders and decided to present to Economic Coordination Committee (ECC) for formal approval. The Council highlighted that the OMC’s margin in Pakistan is the lowest in the region, comprising only 1.5 percent of retail fuel pricing. Therefore, it asked the government to increase the overdue margin and grant immediate relief to ensure an uninterrupted fuel supply across the country.