Petrol prices expected to rise in Pakistan from 16 Dec – check new rates

The Cabinet’s Economic Coordination Committee (ECC) is meeting today, chaired by Finance Minister Muhammad Aurangzeb, and is expected to approve increasing margins for oil companies and dealers on petroleum products.

The meeting will discuss an 11-point agenda and several important approvals are expected. If approved, petrol and diesel prices could rise by around Rs 2.40 per liter.

Sources said the proposed increase in margins is in line with inflation. The suggested increase would raise profits for oil marketing companies (OMCs) by Rs 1.28 per liter and for dealers by Rs 1.28 per liter.

Previously, OGRA had recommended an increase of Rs 1.35 per liter for companies and Rs 1.40 per liter for dealers. On December 3, the Minister of Petroleum held talks with OMC owners and dealers’ associations to finalize the margin and profit rates.

Currently, OMCs earn Rs 7.87 per liter and dealers receive Rs 8.64 per liter, meaning consumers already pay around Rs 16.51 per liter in combined margins. Any further increase will be applied only after ECC approval and federal cabinet confirmation.

Other key points on the agenda include:

• Reviewing the electricity purchase agreement with Iran

• Approval of the Circular Debt Management Plan for FY 2025-26

• A technical supplementary grant of Rs 1.28 billion for Pakistan Digital Authority

• Implementation of a Lahore High Court decision by the Commerce Division

• Ban on chloroform imports and amendments to vehicle import procedures under the Gift Scheme

• Release of development funds under the Cabinet Division

• Rs 5 billion grant for housing sector subsidy

• Proposals regarding PASCO closure, special vehicles for Wet Stock Management Company, and budget release for PIA Holding Company

Read More: Islamabad, Jakarta Sign Major Agreements to Strengthen Ties