Cabinet Approves Increase in Dealers’ Margin on MS, HSD

The federal cabinet Saturday approved an increase in dealers’ margin to Rs. 7 per liter on the motor spirit (MS) and high-speed diesel (HSD).

Sources said that the Ministry of Petroleum took the approval of the increase in dealers’ commission on the sale of petroleum products through circulating a summary.

The Economic Coordination Committee (ECC) on Thursday fixed the profit margin of dealers at Rs. 7.00 per liter for MS and HSD.

The Petroleum Division submitted a summary on the revision of OMCs and dealers’ margins on petroleum products. It was informed that the existing margins were fixed in December 2021 and Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries, and utility bills.

The committee after discussion approved the proposal to fix the margin of dealers at Rs. 7 per liter.

The proposal of the Petroleum Division was that the increase in the proposed margins for dealers may be accounted for in the forthcoming selling price from the 1st August 2022, in accordance with the agreement with the dealers.

However, after intense negotiations, PPDA agreed to margins of Rs. 7 per liter for both MS and HSD and based on the agreement and the commitment that the revised margins will be made effective from August 2022.