The Economic Coordination Committee (ECC) of the interim federal cabinet agreed on Wednesday to enhance dealer profit margins by Rs. 1.64 per liter for petrol/diesel, with an additional rise of Rs. 1.87 per liter on both grades in OMC margins but was unable to approve a bailout package for Pakistan International Airlines.
Caretaker Federal Minister for Finance, Revenue, Economic Affairs, and Privatization Dr. Shamshad Akhtar chaired the meeting of the ECC.
A summary of the Ministry of Energy (Petroleum Division) regarding “Revision of OMCs and Dealers Margins on Petroleum Product: MS & HSD” was also considered.
| Dealers | Margins | (Rs/Liter) | OMCs | Margins | (Rs/Liter) | |||||
| Fuel | Sale Price as on 16.07.22 | Old Margin | Approved Margin | % of increase over old margin | % of sale price | Sale Price as on 01.08.22 | Old Margin | Approved Margin | % of increase over old margin | % of sale price |
| MS | 230.24 | 4.90 | 7.00 | 42.86% | 3.04% | 227.19 | 3.68 | 6.00 | 63.04% | 2.64% |
| HSD | 236.00 | 4.13 | 7.00 | 69.49% | 2.97% | 244.95 | 3.68 | 6.00 | 63.04% | 2.45% |
The ECC decided to enhance the Petroleum dealers’ margins on MS & HSD by Rs. 1.64/liter in four fortnightly installments of Rs. 0.41/liter w.e.f. from 15th September 2023.
Moreover, the OMC margin on MS & HSD was decided to be enhanced by Rs. 1.87/liter in four fortnightly installments of Rs. 0.47/liter w.e.f 15th September 2023.
Furthermore, after a detailed discussion, it was also decided by the ECC that in order to ensure efficiency and timeliness these margins shall be determined by OGRA on the basis of a systematic mechanism to be developed by OGRA after considering PSO’s operating cost for OMC and dealers.
It is also recommended that PSO and other OMCs may be allowed line fill cost (around Rs. 0.84/liter) associated with transportation of MS and HSD through White Oil Pipeline (WOP) along with HSD line losses through IFEM under a mechanism to be developed by OGRA.
Ministry of Aviation submitted a summary regarding “Financial support for PIACL & its Restructuring”. Secretary Aviation gave a detailed briefing to the Chair about the financial burdens, liabilities of PIA, and the need for restructuring of the organization.
The ECC discussed and reviewed the timelines and costs of the restructuring plan. After detailed discussion and deliberation, it was decided to constitute a separate committee for the assessment of the restructuring plan of PIA.
The ECC also rejected the request for deferment of the payments of Rs. 1.3 billion per month which PIA pays to FBR against FED and Rs. 0.7 billion per month which PIA pays to CAA against embarking charges. It was also decided that the Finance Division and the State Bank of Pakistan will support PIA in tackling its financial challenges after a concrete plan for restructuring PIA has been finalized and submitted to the satisfaction of the Committee.
Lastly, the ECC approved a Technical Supplementary Grant worth Rs. 40 billion against various approved projects of Defense Services and for subsidies & miscellaneous expenditures during FY 2023-24. However, the amount will not be released at once, but on case to case basis only as it has already been budgeted for the current FY.
Sami Saeed, Minister for Planning, Development & Special Initiatives, Gohar Ijaz, Minister for Commerce, Industries & Production, Shahid Ashraf Tarar, Minister for Communication, Maritime & Railways, Muhammad Ali, Minister for Power & Petroleum, Dr. Waqar Masood, Advisor to the PM on Finance, Air Marshal (Rtd) Farhat Hussain Khan, Advisor to PM on Aviation, Governor SBP, Chairman SECP, Federal Secretaries and other senior officers attended the meeting.
A Great Step.
Rob the POOR to make the RICH richer.
And continue like that.