ISLAMABAD: Petroleum dealers urged the federal government to implement a long-pending increase of Rs2.20 per litre in their sale margins on petrol and diesel, a revision they say has been delayed since July 2023. The demand was raised during a meeting of the National Assembly’s Standing Committee on Petroleum, chaired by Syed Mustafa Shah.
Representatives of the Pakistan Petroleum Dealers Association (PPDA) informed the committee that the Economic Coordination Committee (ECC) had approved an increase of Rs1.64 per litre for dealers and Rs1.87 per litre for oil marketing companies (OMCs) in September 2023.
The revision was to be applied in four phases based on Pakistan State Oil’s (PSO) operating costs, with future adjustments linked to inflation.
While dealers have since proposed a revised increase of Rs2.20 per litre, the Oil and Gas Regulatory Authority (Ogra) had recommended a Rs1.40 per litre hike in the existing Rs7.87 per litre margin. However, this proposal remains unnotified despite the passage of nine months.
The committee directed the Petroleum Division, Ogra, and the PPDA to submit detailed reports outlining the issue and possible solutions.
Discussions also touched on a proposal to convert CNG filling stations into petrol pumps. Petroleum Minister Ali Pervaiz Malik clarified that such cases would be considered individually under the existing policy, with no immediate changes planned. Further discussion on the matter was postponed until the committee’s next meeting.
The minister also addressed concerns about fuel quality and taxation on LPG, noting that Ogra is the responsible authority and that relevant adjustments would be considered in the upcoming budget.
Ogra Chairman Masroor Khan added that petroleum prices are reviewed fortnightly with government approval, and around 50 percent of national demand is met by state-owned PSO.
