ISLAMABAD: The Economic Coordination Committee (ECC) has approved an increase of Rs2.56 per litre in combined profit margins for oil marketing companies (OMCs) and petroleum dealers to improve sector profitability, while also introducing stricter rules for used vehicle imports and limiting chloroform imports to certified pharmaceutical companies.
Chaired by Finance Minister Muhammad Aurangzeb, the ECC approved a Rs1.22 per litre rise in OMC margins and a Rs1.34 per litre increase for petrol and diesel dealers. The adjustments will be rolled out in two phases.
Immediate Increase from Next Price Revision
- OMCs: +61 paise per litre → new margin Rs8.48
- Dealers: +67 paise per litre → new margin Rs9.31
The second phase—an identical increase—will take effect on June 1, 2026, contingent upon the full digitalisation of sales and stock networks and real-time connectivity with OGRA, FBR, and the Petroleum Division.
Once fully implemented:
- OMC margin will rise to Rs9.10 per litre (from Rs7.87)
- Dealer margin will reach Rs9.98 per litre (from Rs8.64)
The margin revisions were approved in line with national CPI adjustments for FY24 and FY25, with increases capped at 5–10 percent. Half of the hike takes effect now, while the remainder depends on meeting digital transparency benchmarks.
Major Overhaul of Used Vehicle Import Schemes
The ECC has tightened procedures governing used vehicle imports, discontinuing the Personal Baggage Scheme and retaining only the Transfer of Residence and Gift Schemes.
Key changes include:
- Commercial import safety & environmental standards now apply
- Import age limit extended from two to three years
- Imported vehicles must remain non-transferable for one year
- Minimum overseas stay: three years with at least 850 cumulative days
- Vehicles under Transfer of Residence must be shipped from the same country of residence
The reforms respond to extensive misuse of schemes designed for expatriate Pakistanis and growing concerns from local auto assemblers over quality competition and foreign exchange pressures.
Chloroform Imports Restricted to Drug Industry
The ECC also approved limiting imports of Trichloromethane (chloroform) — a toxic and carcinogenic chemical — to pharmaceutical companies only, and only with a Drug Regulatory Authority of Pakistan (Drap) NOC.
While several ministries supported a full ban, Drap argued that chloroform remains essential for laboratory testing and pharmaceutical quality control.
Other Key Decisions
- Ghani Glass’ request for concessionary gas/RLNG tariffs was rejected, as such subsidies are no longer permitted.
- Rs1.28 billion supplementary grant approved for the Pakistan Digital Authority to support digital transformation across government.
- Rs5 billion supplementary grant approved for the Ministry of Housing and Works.
- The ECC also approved releasing funds for PIA Holding Company Ltd to cover pensions and medical expenses of PIA employees.
These wide-ranging decisions reflect the government’s efforts to strengthen revenue transparency, regulate imports, and support key public sector entities while enhancing digital governance.
Story by Khaleeq Kiani
