Pakistan's Economic Coordination Committee approved a PKR 1.34 per liter increase in dealers' margins on petrol and diesel, government sources said on Friday.
The move raises the portion of retail fuel prices allocated to dealers, with the new rate taking effect immediately.
How much did Pakistan increase fuel dealers' margins by?
The Economic Coordination Committee raised dealers' margins on petrol and diesel by PKR 1.34 per liter, lifting the rate from PKR 8.64 to PKR 9.98 per liter.
Prime Minister Shehbaz Sharif was informed of the decision and endorsed the increase, according to government sources. The new margin applies immediately across the country.
Who approved the fuel dealers' margin increase?
The ECC, chaired by Finance Minister Muhammad Aurangzeb, approved the revision after considering a proposal from the Petroleum Division covering dealers' margins on motor spirit and high speed diesel.
The meeting was attended by Petroleum Minister Ali Pervaiz Malik, National Food Security and Research Minister Rana Tanveer Hussain, Economic Affairs Minister Ahad Khan Cheema and senior officials from relevant ministries and divisions.
Will pump prices rise because of the margin increase?
The overall impact on pump prices will depend on other components of Pakistan's petroleum pricing formula, including international oil prices, taxes and other levies.
The dealers' margin is only one part of that formula, so a change in the margin does not by itself determine the final retail price.
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