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ECC increases petroleum dealers’ margin to Rs 7 per litre

ECC increases petroleum dealers' margin to Rs 7 per litre

The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved the proposal to fix dealers’ margin at Rs 7 per litre for Motor Spirit (MS) and High-Speed Diesel (HSD). 

Federal Minister for Finance and Revenue Miftah Ismail presided over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Finance Division today.

The Petroleum Division submitted a summary on the revision of OMCs and dealers’ margins on petroleum products, said a press release issued here. 

It was informed that the existing margins were fixed in December 2021 and Pakistan Petroleum Dealers Association has approached the government for immediate revision of their margins due to inflation, increase in tariff salaries and utility bills, etc, said a press release issued here.

Ministry of National Food Security and Research submitted a summary on urgent advice relating to the award of the 4th International Wheat Tender 2022 opened on 25th July 2022.

 It was informed that the Trading Corporation of Pakistan (TCP) issued the 4th tender on May 19, 2022, for securing a quantity of 200,000 MT of imported wheat on a CFR basis. 

The tender was opened on July 25, 2022, wherein six international suppliers participated, out of which five offered rates.

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The ECC after a detailed discussion approved the lowest bid offered by M/s Falconbridge FZ LLC  at  $407.49 per metric tonne CFR bulk on a sight LC basis with direction to TCP to negotiate with the Russian authorities to procure wheat at a lower rate subject to confirmation of the ECC. 

Ministry of Water Resources submitted a summary of the compensation package for the Chinese causalities at the Dasu Hydro Power project. 

The ECC decided that the amount of the compensation package will remain the same as per ECC’s earlier decision dated January 21, 2022 (i.e $11.6 million) and approved the disbursement of the compensation amount directly to the company M/s China Gezhouba Group International Engineering Co. Ltd (CGGC) through Ministry of Foreign Affairs. 

Federal Minister for Finance and Revenue Miftah Ismail is presiding over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Finance Division, Islamabad on 28th July 2022. (PID)
Federal Minister for Finance and Revenue Miftah Ismail is presiding over the meeting of the Economic Coordination Committee (ECC) of the Cabinet at the Finance Division, Islamabad on 28th July 2022. (PID)

The Ministry of Industries and Production submitted a summary on issues faced by Fatima Fertilizer (Sheikhupura Plant) and Agritech. 

Both the SNGPL-based plants are operated by provisioning RLNG on a cost-sharing basis. The gas rate for the operation of these plants is worked out on the basis of Variable Contribution Margin (VCM). 

Due to increased fuel prices and other factors, both plants have approached the Ministry of Industries and Production for revision of VCM and capping of GST at the price paid by the plants. 

ECC after discussion approved the proposal to ensure compliance with the earlier decision of the ECC and the Federal Cabinet of shifting both the plants to indigenous gas. 

The committee further directed the ministries of petroleum, finance, national food security and industries and production to work out the gas price and VCM for the Fertilizers. It also decided that sales tax may be charged on the actual price of the gas being paid by the company. 

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Pakistan bans import of 80 luxury items to fix economy

Oil import bill increased by 95pc in 10 months

Ministry of Commerce submitted a summary on prohibition/complete quantitative restrictions on import of non-essential and luxury items. 

It was submitted that in order to curtail the rising current account deficit (CAD), a ban on the import of about 33 classes/categories of goods was imposed with the approval of the Cabinet. 

Due to the decision, the overall imports of the banned items shave shrunk by over 69 per cent from $399.4 million to $123.9 million. 

A review meeting was also held to review the ban after two months owing to serious concerns raised by major trading partners on the imposition of the ban and considering the fact that the ban has impacted supply chains and the domestic retail industry. 

In the light of the fact that imports were substantially reduced due to consistent efforts of the government, the ECC decided to lift the ban on imported goods except for auto CBU, mobile CBU and home appliances CBU. 

Further, all held-up consignments (except items which still remain in the banned category) which arrived at the ports after 1st July 2022 may be cleared subject to payment of a 25 per cent surcharge.

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