OMC’s and Dealer’s margins hike opposed
Karachi: The Ministry of Finance and Planning Division has opposed the hike in profit margins of Oil Marketing Companies (OMCs) and Dealer’s commission considering the fact that this hike would result in a significant increase in the price of Motor Spirit (MS) and High Speed Diesel (HSD) by PkR1.73 per litre and PkR 1.97 per litre respectively.
According to Alfalah Securities Limited, the Finance Ministry has also witnessed that an increase in international prices were absorbed through a decline in petroleum levy which has reduced the revenue of the government. Moreover, the government is still firm to reduce their revenue losses through a hike in petroleum levy. On the other hand, the ministry had also argued that the petroleum levy should be used as a price stabilizing factor rather than a source of revenue for the government.