ISLAMABAD: The Economic Coordination Committee (ECC) on Tuesday decided to transfer the Rs4.12 per litre relief from the price reduction of Pakistan Oilfields Limited (POL) products to refineries, OMCs (oil marketing companies), and dealers for the upcoming two weeks.
For the next 12 months, the decision to raise POL prices by Rs4.12 per litre will remain in effect, which will be adjusted in light of the oil price relief that is anticipated to begin on May 16, The News quoted a senior official who attended the meeting as saying.
“The top functionaries of the Petroleum and Finance Divisions, after consultation with the prime minister, will finalise the decision and notify the next POL prices today (Thursday),” said the official
Earlier, the government, instead of passing relief to the end consumers, had increased the petroleum levy twice; firstly to provide relief to electricity consumers and secondly for the construction of the N-25 highway in Balochistan.
In its summary, the Petroleum Division proposed to the ECC to hike Internal Freight Equalisation Margin (IFEM) by Rs1.87 per litre for refineries and OMCs margin by Rs1.13 per litre to help recover Rs34 billion in losses in the next 12 months.
Refineries and OMCs are facing perpetual losses because of the sales tax exemption on POL products since FY25. This measure has not only stopped the upgrade projects of refineries valued at $6 billion but also increased their operation costs. ECC has also endorsed the dealers’ margin of Rs1.12 per litre.
