- The refineries and the WTOs are faced with perpetual losses.
- End users would pay 85 billion additional rupees.
- Govt has increased oil withdrawal twice.
Islamabad: The Economic Coordination Committee (ECC) decided on Tuesday to transfer the RS4.12 by liter relief of the price reduction of Pakistan OILFIELDS LIMITED (POL) products to refineries, OMCS (oil marketing companies) and dealerships for the next two weeks.
During the next 12 months, the decision to increase the Pol of RS4.12 prices per liter will remain in force, which will be adjusted in light of the price of oil price which should start on May 16, The news cited a senior official who attended the meeting as indicated.
Thus, from May 16, end users would pay 85 billion additional rupees in the form of an increase in the margin of internal freight (IFEM), the margin of the WTOs and the margin of the concessionaires during the coming year.
“The main civil servants of the oil and financial divisions, after consultation with the Prime Minister, will finalize the decision and will notify the next Pol prices today (Thursday),” said the manager
Earlier, the government, instead of transmitting relief at the end of consumers, had increased oil withdrawal twice; First, relieve consumers of electricity and secondly for the construction of the N-25 motorway in Baloutchistan.
In its summary, the petroleum division proposed to the ECC to increase the margin of equalization of internal freight (IFEM) of RS1.87 per liter for refineries and the WS1.13 WTC margin per liter to help recover RS34 billion losses in the next 12 months.
The refineries and the WTOs are faced with perpetual losses due to the exemption from the sales tax on POL products for 25. This measure has not only stopped projects to upgrade refineries worth $ 6 billion, but also increased their operating costs. The ECC has also approved the margin of RS1.12 dealerships per liter.