27/07/2008
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OMCs say no margins no new investment
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Monitoring Desk
KARACHI: Oil Marketing Companies (OMCs) are found to have threatened the government to defer future investments, if the freeze on petroleum products' profit margin was not removed.
According to reports, government has put on hold the OMCs margin and dealers' commission at July 1 position to shield the consumers from the impacts of the staggering 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 per cent. Sources said that the OMCs have sent a memo to the government expressing their annoyance over blocking of their profit margin.
One foreign oil company was of the view that it would review its future investment programme here due to government's decision to freeze profit margin. 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.
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