ISLAMABAD   -  The prices of petrol and high-speed diesel (HSD) are likely to go up by Rs2.75 per litre each as Oil and Gas Regulatory Authority (OGRA) has proposed a hike of up to 17.15 percent in the Oil Marketing Companies (OMCs) and petroleum dealers’ margins.

The OGRA has recommended the increase of 17.15 percent in OMCs margin petrol and HSD, while 16.20 percent increase in dealer’s margin, OGRA said in a letter written to Secretary Petroleum Division regarding revision of OMCs and Dealer’s margin.

In the letter, OGRA has recommended a hike of Rs1.35 per litre in OMCs margin on petrol and HSD. If approved the OMCs margin on petrol and HSD will go up to Rs9.22 per litre from the existing Rs7.87 per litre.

Similarly, the regulator has proposed a hike of Rs1.40 per litre in the margin of for petroleum dealers on petrol and HSD. If OGRA recommendation was approved, the margin of petroleum dealer will raise to Rs10.04 per litre from the existing Rs8.64 per litre.

The letter said that OGRA was advised by Petroleum Division to determine OMCs and Dealers margins in the light of ECC decision dated September 06, 2023 based on PSO’s operating cost.

In compliance of referred ECC decision, PSO was advised to provide its operating cost data for review and calculation of margins. Accordingly, after analysis and due deliberations on PSO’s data, the proposed OMCs’ and Dealers’ margins have been computed for MS & HSD.

The recommended margin includes an impact of Rs0.50 per litre for OMC and Rs0.25 per litre in Dealer margin in addition to PSO’s cost data, to facilitate future Digitalisation/ Automation of Fuel Pumps being undertaken as per the directions of federal government, over a period of three years. FBR, OGRA, MoE(PD) and Oil Industry are jointly working for the implementation of Digitalisation project. OMCs shall ensure digitalisation of pumps at their dealers’ sites and shall submit monthly progress report, duly signed by the Chief Executive of the Company, for consideration of OGRA, FBR, and MoE(PD).

OGRA has sought the consent of the federal government for enhancing the OMCs margin by Rs1.35 per litre, while Dealers margin by Rs1.40 per litre. The revised margin shall be effective as decided by the federal government. OGRA has also sought the federal government’s advice regarding implementation of the revised margins in phased or otherwise.

The increase in OMCs and Dealers margin will increase the prices of petrol and HSD by Rs2.75 per litre.