.jpeg)
ECC Approves Shift of Rs4.12/Litre Fuel Price Relief to Refineries, OMCs, and Dealers
ISLAMABAD: The Economic Coordination Committee (ECC), in a meeting held on Tuesday, May 13, 2024, approved in principle the reallocation of Rs4.12 per litre in petroleum price relief. Instead of passing this benefit to end consumers, the relief will now be directed to refineries, oil marketing companies (OMCs), and petroleum dealers, effective from May 16, 2025, for a period of one year.
According to a senior official present at the meeting, the decision effectively means consumers will pay an additional Rs85 billion over the next 12 months. This increase will come through adjustments in the Internal Freight Equalisation Margin (IFEM), as well as higher margins for OMCs and dealers.
The move follows recent fluctuations in international oil prices. Just three days ago, a potential price cut of Rs7 per litre had been estimated for consumers, but this relief has now been trimmed to a little over Rs5 per litre due to rising global prices.
Final approval of the revised petroleum prices will be issued today (Thursday) following consultations between key officials from the Petroleum and Finance Divisions and the Prime Minister, sources confirmed.
Previously, the government had chosen to raise the petroleum levy—once to subsidize electricity consumers and again to fund the N-25 highway project in Balochistan—instead of transferring oil price relief directly to the public.
In a summary submitted to the ECC, the Petroleum Division proposed an increase of Rs1.87 per litre in the IFEM for refineries, along with a Rs1.13 per litre hike in OMC margins. These steps aim to recover Rs34 billion in projected losses over the coming year. The sector has been facing financial pressure due to the exemption of sales tax on POL products since FY2024-25, which has not only raised operational costs but also stalled $6 billion worth of refinery upgrade projects.
The ECC also approved a dealers’ margin increase of Rs1.12 per litre as part of the restructured pricing framework
Trending news,newspaper ,update ,us,uk,
