The Planning Commission, Finance Division and Oil and Gas Regulatory Authority (OGRA) have alleged that oil marketing companies (OMCs) and dealers pursue large profits on the sale of petroleum products and to protect the consumers by rationalizing the charges.
In response to a pitch for increasing petrol and high-speed diesel margins, OGRA countered that such a hike for the OMCs and dealers would impact the end-customers. It asked the Energy Ministry to study the finances of the OMCs and see if there is any explanation for the hike.
Furthermore, OGRA said that it was the purview of the federal government to decide the matter.
The finance division thinks that the hike in petrol margins is higher than last year with OMCs looking for a 9.5% increase as compared to a 3.5% hike last year. In the case of the dealers, the proposed is 9.7% as compared to 3.5% last year. It further underlined that these hikes needed to be rationalized as inflation was on the rise due to the increase in the prices of petroleum products and a hike like this could further increase the inflation.