ECC approves allocation of additional Rs11.73bn for PDC payment

March 15, 2022 (MLN): In order to address PSO and other Oil Marketing Companies (OMCs) concerns over the mechanism of payment of Price Differential Claims (PDC), the Economic Coordination Committee (ECC) has approved to allocate an additional Rs11.73 billion as a supplementary grant to meet the expenditure on payment of PDC up to March 31, 2022.

The decision was made on the summary submitted by the Petroleum Division pertaining to a revised mechanism with the change to the previously approved mechanism that the PDC will be applicable on the sale of petroleum products rather than on procurement of products.

To recall, ECC in its meeting held on March 7, 2022, approved a special PDC disbursement mechanism to pay the PDC speedily within 15 days, the opening of a special assignment account with PSO and the initial amount of Rs20 billion to PSO in accordance with the mechanism.

The price differential would be paid to the Oil Marketing Companies/ Refineries by the government as a subsidy to avert any shortage in the market.

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