Pakistan Oil Marketers Seek Margin Hike Amid Sector Turmoil

Oil marketing companies in Pakistan are seeking an immediate increase in their profit margins from the government. In a letter to the Federal Minister for Petroleum, the Oil Companies Advisory Council (OCAC) has urged that the current margin of Rs7.87 per liter be raised by Rs2.23.

This demand comes after weeks of turmoil in the petroleum sector, including a five-day strike by goods transporters and threatened shutdowns by petroleum dealers. The council argues that without immediate relief, companies will struggle to meet business expenses, potentially destabilizing the supply chain.

OCAC Secretary General Nazir Abbas Zaidi noted that multinational investors associated with OCAC are also facing difficulties due to rising costs and compliance requirements.

The government has been under pressure from oil marketing companies for a margin hike, but no meaningful progress has been made in the past three years. The council is warning that if their demands are not met, the supply system of petroleum products may become unstable.