ECC approves Rs55.48bn for price differential claims of OMCs

ECC approves Rs55.48bn for price differential claims of OMCs

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Monday approved an amount of Rs55.48 billion for payment of price differential claims of Oil Marketing Companies (OMCs).

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

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Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance & Revenue Dr. Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, Federal Secretaries and senior officers attended the meeting.

Petroleum Division submitted a summary for reimbursement of Price Differential Claims (PDCs) of Oil Marketing Companies (OMCs) and Refineries.

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The price differential is to be paid to the Oil Marketing Companies/Refineries by the Government as a subsidy in the wake of Government’s decision to keep the petroleum products’ prices fixed at the level notified on March 01, 2022.

The ECC after deliberation approved supplementary grant of Rs. 55.48 billion for disbursement of PDC to OMCs/Refineries for the first fortnight of May, 2022.

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Due to continuously rising trend of oil prices in the international market, the quantum of subsidy has been on higher side.

Ministry of Industries and Production submitted a summary on import of Urea and presented that the government intends to create better stock for Urea fertilizer to ensure continuity of Urea supply during next financial year and requested for allowing import of Urea from international market in order to stabilize the local market.

The ECC after discussion allowed Trading Corporation of Pakistan (TCP) to explore the possibility of import of 200,000 MT of Urea on G2G basis and on deferred payment.

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