Govt decides to change oil prices on daily exchange rate

The government has decided in principle to change the pricing mechanism for petroleum products and narrow down its period to cater for the fast changing currency exchange rate and minimise losses of oil marketing companies (OMCs) and refineries.

The government has also given a commitment to the OMCs to increase their margins on sale of petroleum products on a par with with dealers who have secured 43 per cent increase in margin on petrol and 70 per cent on high speed diesel (HSD) to Rs7 per litre each with effect from August 1.

The OMCs have now enhanced their demand for margins at Rs9 per litre to compensate for higher taxation impact.

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