Petrol, diesel prices likely to rise as govt increases OMC margin

ISLAMABAD: The Economic Coordination Committee (ECC) has approved an increase in margins for oil marketing companies (OMCs) and dealers, a move that is likely to place an additional financial burden on citizens through higher petrol and diesel prices.

Finance Minister Muhammad Aurangzeb chaired the ECC meeting on Tuesday.

According to sources, petrol and diesel prices will see an extra cost of up to Rs2.56 per litre, with Rs1.28 per litre of the increase being passed on immediately.

The sources said that petrol prices will rise as OMC margins are increased by Rs1.22 per litre, while dealers’ commission on diesel will go up by Rs1.34 per litre.

The ECC’s official statement said the increase in margins ranges between five and ten per cent, with half of the hike effective immediately and the remaining half conditional upon digitalisation.

The Petroleum Division has been directed to submit a report on the matter by 1 June 2026.

During the meeting, the ECC also reviewed the circular debt management plan and discussed measures to ensure the financial sustainability of the power sector, instructing the Power Division to prepare a medium-term plan.

The committee approved a follow-up mechanism to monitor DISCO targets and also gave the go-ahead for amendments in the vehicle import policy, including extending the import period for vehicles from two to three years, ensuring compliance with commercial safety and environmental standards, and maintaining a one-year non-transferable period for imported vehicles.

The Transfer of residence and gift scheme will continue, while strict restrictions were placed on the import of chloroform, limiting it to pharmaceutical companies with DRAP/NOC approval.

The ECC also rejected the concessionary gas tariff case for dense glass production.

In addition to these measures, the committee approved a grant of Rs128 crore for the Pakistan Digital Authority, released funds for Cabinet Division development projects, and sanctioned Rs500 crore for the Housing and Works Division.

It also approved the establishment of a special company to wind up PASCO after its liabilities are settled and gave principle approval for funds to cover pensions and medical expenses of PIA Holding Company employees.

The ECC said that fuel subsidies have been removed and that the broad export support policy will continue as before, underscoring its focus on fiscal sustainability while managing essential sectors.