Oil dealers, OMC margins likely to be increased from Nov 1

ISLAMABAD: The Petroleum Ministry has proposed an increase in the dealers and oil marketing companies’ margins from November 1, ARY News reported, citing well-placed sources.

According to recommendations forwarded by the Petroleum Ministry, the margin of dealers on petroleum products will likely be increased by Rs0.88/ litre from November 1, while Rs0.47 per litre increase is proposed in the profit margin of oil marketing companies.

The source said the current OMC profit margin on petrol is Rs7.41 per litre and Rs8.23 per litre is being charged as profit margin by the dealers.

Simanatously, Rs.7.41 per litre is being charged on diesel as OMC margin.

Meanwhile, Petroleum prices are expected to ‘drop’ for the third consecutive fortnight later this week, mainly due to exchange rate gains.

Sources said that the price of High-Speed Diesel (HSD) is likely to decrease by about Rs5-6 per litre, falling to less than Rs300 per litre, unless the caretaker government further increases the petroleum levy. On the other hand, petrol would be cheaper by about Rs18 per litre.

The final decision for the reduction in fuel prices will be taken by the caretaker government tomorrow (October 31).