OMCs demand 100pc increase in margins

Within months after an over 25 per cent increase, the Oil Marketing Companies (OMCs) have formally demanded 100pc increase in their profit margins on the sale of petroleum products to “ensure the survival” of the industry. “OMC’s margin for high-speed diesel (HSD) and petrol should be set at Rs12 per litre”, to maintain the feasibility and ensure the survival of OMCs, wrote the Oil Companies Advisory Committee (OCAC) to the federal government. The cartel representing more than three dozen oil companies and refineries said the Rs12 per litre margin would amount to less than 6pc of the current ex-refinery price. Sources in the Petroleum Division said the dealers would also be raising similar demands as the two segments of the supply chain normally moved in tandem with each other. The dealers’ commission was also increased by more than 25pc last year to Rs7 per litre.