Cabinet Approves Increase in Dealers’ Margin on MS, HSD

The federal cabinet Saturday approved an increase in dealers’ margin to Rs. 7 per liter on the motor spirit (MS) and high-speed diesel. Ministry of Petroleum took the approval of the increase in dealer’s commission on the sale of petroleum products through circulating a summary.

The Petroleum Division submitted a summary on the revision of OMCs and dealers’ margins on petroleum products. The existing margins were fixed in December 2021. Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries, and utility bills.

The committee approved the proposal to fix the margin of dealers at Rs. 7 per liter. The increase in the proposed margins for dealers may be accounted for in the forthcoming selling price from the 1st August 2022, in accordance with the agreement with the dealers and the Ministry of Petroleum and Natural Resources (MPR).

However, after intense negotiations, PPDA agreed to margins of Rs. 7 per liter for both MS and HSD and based on the agreement and the commitment that the revised margins will be made effective from August 2022.