ISLAMABAD: Petroleum product prices are expected to rise as the Economic Coordinating Committee (ECC) on Thursday approved increased sales and distribution margins for Petroleum Marketing Companies (OMC) and petroleum traders, FYR reported News citing sources.
A well-placed source in the Ministry of Finance told ARY News that the ECC meeting chaired by Finance Minister Miftah Ismail here in Islamabad accepted the demands of OMC oil dealers by increasing their sales margin by Rs 7 per litre. .
CMOs and oil traders have sought to increase their sales and distribution margins by around 6% on the assumption of rising costs of doing business and inflation.
The dealer margin increase will take effect Aug. 1 after federal cabinet approval, they said.
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Sources in the oil sector said that with the government agreeing to the dealer margin requirements and also agreeing to improve the MOC margin, the total increase would be part of the gasoline and diesel prices, which means that these products would become more expensive for end consumers.
It is relevant to mention here that the government in place. July 14 announced a reduction of Rs18.50 per liter of petrol and diesel of Rs40.54 per litre.