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Ogra modifies Oil Marketing Companies, dealers’ margins
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Rizwan Hidayat
KARACHI: Oil and Gas Regulatory Authority (OGRA) has uncapped the margins of Oil Marketing Companies (OMCs) & their dealers and set them back to old mechanism, according to the notification issued by Ogra. Therefore, OMCs' margin now on regulated product is calculated at 3.5 per cent of the ex-refinery prices and IFEM.
Form this effect the margins of OMCs on High Speed Diesel (HSD), Light Diesel Oil (LDO) and Kerosene have increased 12.9 per cent, 9.8 per cent and 25.4 per cent respectively.
HSD margin hiked to Rs1.49 from which was earlier Rs1.33 per litre. Furthermore, LDO and Kerosene margins also surged to Rs1.34 & Rs1.53 per litre respectively from Rs1.22 per litre on both products.
However, margin on petrol reduced from Rs1.7 per litre to Rs1.21 per litre. Similarly, HOBC margin also reduced from Rs1.84 to Rs1.34 which represents a decline of 27.2 per cent. On the other hand, dealer margins also slashed significantly on all three regulated products i.e HSD, MS & HOBC.
Dealer margin on HSD has been slashed to Rs1.7 from Rs1.8 per litre. Earlier, Economic Coordination Committee (ECC) had capped OMCs' margin, dealers' commission at $100 per barrel. As now crude oil is trading far below the cap level so it is justified to remove the cap.
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