| GEO Business|
| OMCs threaten to cease investment|
| Updated at: 1418 PST, Saturday, July 26, 2008|
KARACHI: Oil Marketing Companies (OMCs) are learnt to have threatened the government shelving future investments, if the freeze on petroleum products’ profit margin was not lifted.
According to the media information, the government has put on hold the OMCs margin and dealers’ commission at July 1 position for somewhat shielding the consumers from the impacts of the hiking international oil prices. Following the hikes in international market oil prices from February this year, dealers’ commission and the margin of the companies had shot up by 40 to 50 percent. Sources said that the OMCs have sent a memo to the government expressing their displeasure over freezing of their profit margin.
One foreign oil company said that it would review its future investment program here in the wake of its freezing of profit. Company sources said that talks on this issue were held between the government and the representatives of OMCs, whose recommendations were to be presented in the Economic Coordination Committee meeting, but without the approval of the Committee, it was implemented. Another foreign company also resenting the government’s decision demanded its revision. Otherwise, oil supply after September could be hampered, it said.