| GEO Business|
| Margins of OMCs, dealers enhanced|
| Updated at: 0522 PST, Saturday, January 10, 2009|
ISLAMABAD: The Economic Coordination Committee (ECC), which met here under the Adviser to Prime Minister on Finance Shaukat Tareen on Friday, accorded approval to an increase in margins of oil marketing companies (OMCs) and dealersí commission on petrol and High Speed Diesel.
The meeting increased the margin of OMCs on petrol from 3.5 per cent to 4 per cent and on High Speed Diesel from Rs 1.12 to Rs 1.35 per litre and dealersí commission on petrol to 5 per cent from 4 per cent and on High Speed Diesel to Rs 1.50 from Rs 1.28 per litre.
This increase will not be passed on to end consumers and the government will absorb the hit in the Petroleum Development Levy (PDL). The incumbent regime, which had earlier reduced the commission of OMCs and dealers, has now taken a U turn after people faced shortage of CNG and POL products in most parts of the country.
Sources said the government was compelled by the monopoly of OMCs and dealers to take this decision. This would ensure the supply chain of POL products and CNG at all petrol pumps and CNG stations, they added.