ISLAMABAD: The Economic Coordination Committee (ECC) has approved a plan to redirect the relief of Rs4.12 per litre in petrol and high-speed diesel (HSD) prices to oil refineries, oil marketing companies (OMCs), and fuel dealers, starting from May 16, 2025, for a period of one year.
In a meeting held on May 13, 2025, the ECC decided that this adjustment—meant to support stakeholders amid financial challenges—will be implemented through increases in the Internal Freight Equalisation Margin (IFEM), OMCs’ margin, and dealers’ commission. As a result, consumers will bear an additional Rs85 billion over the next 12 months.
The Petroleum Division, in its proposal, recommended an increase of Rs1.87 per litre in IFEM, Rs1.13 per litre in OMCs’ margin, and Rs1.12 per litre in dealers’ margin. These revisions aim to recover Rs34 billion in losses incurred by the sector due to the ongoing sales tax exemption on petroleum products in FY25.
Officials said the proposed hike is necessary to sustain operations and resume stalled refinery upgrade projects worth \$6 billion. The final pricing decision will be made after consultations between the Petroleum and Finance Divisions and the Prime Minister, with notification expected today (Thursday).
Meanwhile, expected relief for consumers from falling international oil prices has narrowed to just over Rs5 per litre due to a recent uptick in global market rates.
Story by Khalid Mustafa
