ECC approves up to 10% increase in OMCs, dealers’ margins on petrol and diesel

ISLAMABAD: In a decision that is expected to impact fuel consumers nationwide, the Economic Coordination Committee (ECC) on Tuesday approved an increase of 5percent to 10pc in the margins of Oil Marketing Companies (OMCs) and petroleum dealers on petrol (MS) and high-speed diesel (HSD).

The ECC directed that half of the revised margins be paid immediately, while the remaining half will be contingent on progress in the digitization process, with the Petroleum Division required to report back by June 1, 2026.

According to industry sources, when the ECC has increases the margins of OMCs and petroleum dealers, so these margins will become part of the per-litre price of petrol and diesel.

This increase in margins (whether 5% or 10%) directly increases the consumer price, unless the government absorbs the cost — which is not mentioned in the ECC’s decision, they added.

The ECC meeting—chaired by Finance Minister Muhammad Aurangzeb at the Finance Division—also reviewed the Circular Debt Management Plan for FY 2025–26 presented by the Power Division. The Committee instructed the Power Division, in coordination with the Finance Division, to develop a medium-term plan to gradually reduce fiscal support and asked for a strict follow-up mechanism with DISCOs to ensure delivery of committed targets.

On a summary submitted by the Ministry of Commerce, the ECC approved amendments to the vehicle import procedure, retaining only the Transfer of Residence and Gift Schemes. Under the revised rules, commercial-import safety and environmental standards will apply to these schemes, the import period will be extended from two to three years, and imported vehicles will remain non-transferable for one year.

The Committee also approved restricting chloroform (Trichloromethane) imports due to its toxic and carcinogenic nature, allowing imports only by pharmaceutical companies and only with a DRAP-issued NOC.

On another summary, the ECC rejected the claim by M/s Ghani Glass for a concessionary gas/RLNG tariff, stating the request was untenable since such subsidies were no longer permissible and broader export-support initiatives were already underway.

The ECC further approved a Technical Supplementary Grant (TSG) of PKR 1.28 billion for the Pakistan Digital Authority (PDA) to support digital transformation across government departments. It also approved the release of development funds for the Cabinet Division and allocated Rs 5 billion to the Housing and Works Division through another TSG for the current fiscal year.

In a major administrative restructuring, the Committee approved the creation of a special-purpose company to wind up PASSCO and settle its liabilities. The company will handle incorporation, administrative and financial arrangements, regulatory exemptions, and appointment of interim management, and will be dissolved once its mandate is completed.

The ECC also gave in-principle approval for the release of budgetary allocation for PIA Holding Company Ltd. (PIAHCL) to meet pension and medical expenses of PIACL employees.

The meeting was attended by Minister for Petroleum Ali Pervaiz Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Investment Qaiser Ahmed Sheikh, and senior officials from relevant ministries and regulatory bodies.