Oil Marketing Companies (OMCs) have demanded a 100 percent increase in their profit margins on the sale of petroleum products for ensuring the industry’s survival.
The Oil Companies Advisory Committee (OCAC) said in a letter to the federal government that the OMCs’ margin for high-speed diesel (HSD) and (MS) petrol should be set at Rs. 12 per liter. According to them, the Rs. 12 per liter margin would be less than 6 percent of the current ex-refinery price.
The OCAC stated in a letter to the Petroleum Division that the oil industry plays a critical role in ensuring uninterrupted fuel supply across the country while also generating substantial revenue through duties, taxes, and levies. It had, however, faced severe challenges due to the increased cost of doing business since last year.
The dealers are also expected to raise similar demands. Last year, the dealers’ commission was also increased by more than 25 percent to Rs. 7 per liter.
Pertinently, the OMCs’ margins on petrol and HSD sales were last increased to Rs. 6 per liter from Rs. 3 and Rs. 3.68 per liter in November 2022. The industry was encouraged to raise the bar higher with a 100 percent increase in existing rates due to a 100 percent acceptance of demand for an increase in dealer commissions and OMC margins.