OGRA recommends fuel margin increases based on PSO’s operating costs

ISLAMABAD: The Oil and Gas Regulatory Authority (OGRA) has recommended an increase in the margins for oil marketing companies (OMCs) and fuel dealers, proposing a rise of Rs1.35 per litre for OMCs and Rs1.40 per litre for dealers.

This recommendation has been submitted to the federal government after analysing data from Pakistan State Oil (PSO).

This data pertains to PSO’s operating costs, which the Economic Coordination Committee (ECC) directed should be used as the basis for calculating margins. The ECC had decided on 6 September 2023 that the margins for OMCs and dealers would be determined based on PSO’s cost structure.

In line with the ECC’s decision, PSO provided its operating cost data, which OGRA reviewed thoroughly. As a result, OGRA has proposed increasing the OMCs’ margin from the current Rs7.87 per litre to Rs9.22 per litre for both petrol and diesel.

Similarly, the dealers’ margin is suggested to go up from Rs8.64 per litre to Rs10.04 per litre.

Additionally, the proposed margins account for the costs associated with future digitalisation and automation of fuel pumps, which is being rolled out as per federal government plans.

This includes an added impact of Rs0.50 per litre for OMCs and Rs0.25 per litre for dealers, to be implemented over the next three years.

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