OCAC seeks hike in margins

Category: General

The Oil Companies Advisory Council (OCAC) has approached Prime Minister Shehbaz Sharif, asking for a hike in margins of Oil Marketing Companies (OMCs). Earlier, the government had approved an increase in dealer margins by Rs3 per litre, taking the total margin to Rs7 per litre. However, the margins of OMCs had not been raised, stirring controversy in the oil industry. Following this, OCAC expressed its concern over the approval of the standalone revision in dealer margins, which took effect from August 1, 2022. The OCAC said that OMCs faced additional exposure and cost from which dealers are protected. It also contended that increasing dealer margins on a standalone basis “is prejudicial and will set an undesirable precedent”.


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