OGRA proposes Rs1.35 per liter rise in OMC margin, Rs1.4 for dealers

October 11, 2024 (MLN): The Oil & Gas Regulatory Authority (OGRA), after thorough analysis and deliberation on the data, has submitted a proposal to the federal government to increase the OMC margin by Rs1.35 per liter and the dealer margin by Rs1.40 per liter.

The data being referred to here is of Pakistan State Oil (PSO)'s operating cost. On September 06, 2023, the Economic Coordination Committee (ECC) passed that OMCs and Dealers margin  are to be determine d based on PSO's operating cost

In compliance with the referred ECC decision, PSO was advised to provide its operating cost data for review and calculation of margins.

Accordingly, after analysis and due deliberations on PSO's data, the proposed OMCs' and Dealers' margins have been computed for MS and HSD.

The margin for OMCs, currently set at Rs7.87 per liter for both petrol and diesel, has been proposed to increase to Rs9.22 per liter. Meanwhile, the dealers' margin is proposed to rise from the current Rs8.64 per liter to Rs10.04 per liter.

The above margin includes an impact of Rs0.50 per liter for OMC and Rs0.25 per liter in Dealer margin in addition to PSO's cost data, to facilitate future Digitalization/Automation of Fuel Pumps being undertaken as per the directions of Federal Govemment, over a period of three years.

FOR, OGRA, MoE(PD) and Oil Industry are jointly working on the implementation of the Digitalization project.

"OMCs shall ensure digitalization of pumps at their dealer's sites and shall submit a monthly progress report, duly signed by the Chief Executive of the Company, for consideration of OGRA, FBR, and MoE," OGRA noted in the notice.

Copyright Mettis Link News