Oil marketing companies have asked the government to increase their profit margin per litre, according to reports today. The demand has come after petroleum dealers also called for a higher margin.
The Oil Companies Advisory Council (OCAC) has written to the federal petroleum minister. It has asked the government to raise the profit margin for oil marketing companies without further delay.
Companies face rising costs
According to OCAC, oil marketing companies have been asking for a higher margin for the past three years. However, no major progress has been made on the issue so far.
The council said companies are facing higher business costs along with more financial and regulatory pressure. It has become difficult for them to continue operations under the current margin.
OCAC Secretary General Nazir Abbas Zaidi said the current profit margin for oil marketing companies is Rs7.87 per litre. He said the margin needs to be increased by another Rs2.23 per litre.
The official said the federal petroleum minister had assured the companies that their margin would be increased by Rs1.22 per litre.
However, OCAC believes a larger increase is needed due to the financial problems faced by the companies.
OCAC seeks immediate relief
Zaidi also said multinational oil investors linked with OCAC are facing several challenges. Higher costs and regulatory requirements are adding to their financial pressure.
OCAC has urged the government to approve an immediate and reasonable increase in the profit margin.
The council said this would help reduce the financial pressure on companies and support a stable supply of petroleum products in the country.
Petroleum dealers announce nationwide strike
Previously, talks between petroleum dealers and the government have failed, according to reports today.
Dealers have announced an indefinite nationwide strike from 6 AM on Saturday, August 15. The talks with Federal Minister for Petroleum Ali Pervez Malik remained tense.
The negotiations lasted for five hours and were led by Pakistan Petroleum Dealers Association Chairman Malik Khuda Bakhsh. The minister expressed concern over the 72-hour deadline given by the dealers.