The government has approved an increase of Rs1.34 per litre in the margin available to petroleum dealers on motor spirit and high-speed diesel, raising the margin from Rs8.64 to Rs9.98 per litre. The decision was approved by the Economic Coordination Committee (ECC) of the Cabinet on August 14, Pakistan’s Independence Day, following consideration of a proposal submitted by the Petroleum Division for revision of dealers’ margins on petroleum products.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the ECC meeting at the Finance Division, where the committee reviewed the Petroleum Division’s summary seeking an increase in the margin for dealers of Motor Spirit (MS) and High-Speed Diesel (HSD). The approval changes the amount that petroleum dealers receive per litre as part of the existing petroleum pricing structure.
According to a senior office bearer of the All Pakistan Petrol Pump Owners Association (APPPOA), the revised margin will provide petroleum dealers with Rs9.98 per litre, compared with the previous margin of Rs8.64 per litre. The increase of Rs1.34 per litre represents a revision to the dealers’ component within the overall pricing structure for petroleum products.
The decision follows the Petroleum Division’s proposal to revise the dealers’ margin on key petroleum products sold across the country. Motor Spirit and High-Speed Diesel are among the major fuels distributed through Pakistan’s retail petroleum network, making the dealers’ margin an important component of the overall pricing mechanism.
The ECC approved the proposal during its meeting on August 14, when the country was observing Independence Day. The approval provides petroleum dealers with a higher per-litre margin under the revised structure. The decision does not, in the information provided, disclose any separate adjustment to the retail price of petroleum products resulting specifically from the margin revision.
The ECC meeting brought together senior members of the federal government and officials from relevant ministries and divisions. Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Petroleum Ali Pervaiz Malik and Federal Minister for Economic Affairs Ahad Khan Cheema attended the meeting alongside federal secretaries and senior officials.
The revision of dealers’ margins is part of the broader petroleum pricing framework through which costs and margins associated with the supply and retail distribution of fuel are determined. Petroleum dealers operate the retail outlets that distribute motor spirit and high-speed diesel to consumers, making their margin an important component of the commercial structure supporting the country’s fuel distribution network.
The increase from Rs8.64 to Rs9.98 per litre means dealers will receive an additional Rs1.34 on each litre of the relevant petroleum products under the revised arrangement. The change represents an increase of approximately 15.5% in the dealers’ margin compared with the previous level.
The approval comes as the government continues to review components of the petroleum pricing system, including the margins available to different participants in the fuel supply and distribution chain. The Petroleum Division’s submission to the ECC focused specifically on the dealers’ margin for Motor Spirit and High-Speed Diesel.
With the ECC approval, the revised dealers’ margin stands at Rs9.98 per litre, replacing the previous Rs8.64 per litre level. The decision provides petroleum dealers with a higher margin while maintaining the broader petroleum pricing structure through which fuel costs and distribution margins are determined.
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