The government has relaxed a restriction on the import of “non-essential and luxury items,” with the exception of autos, cell phones, and electronics, and increased dealers’ commission on the sale of energy products by up to an unprecedented 70%.
The choices were made on Thursday during a session of the cabinet’s Economic Coordination Committee (ECC) chaired by Finance Minister Miftah Ismail.
A tender for 200,000 tons of wheat at $408 per ton was also accepted by the committee, and $11.6 million was granted as goodwill recompense for the Chinese victims of the Dasu hydroelectric project in July of last year.
The meeting agreed to raise the dealers’ commission on high-speed diesel (HSD) sales by 70%, to Rs. 7 per liter from Rs. 4.13 at the moment.
Additionally, it raised the dealers’ commission on the sale of gasoline by 43 percent to Rs. 7 rather than Rs. 4.90 per liter as it is at the moment.
This is the country’s largest one-time rise in margins permitted. The gathering was informed that starting in December 2021, dealers’ profit margins on the sales of HSD and gasoline will also climb by more than 25%.
Since then, the commission on gasoline and HSD has increased by a combined 79 percent and 112 percent.
According to a deal that former Prime Minister Shahid Khaqan Abbasi and minister of state for petroleum Musadik Malik, who occupied the position at the time, negotiated with dealers in 2018, the hike was approved.
Dealers intended to go on strike and requested roughly Rs. 14 per liter commission on both items, but it was reduced to Rs. 7, it was revealed to the meeting.
Oil marketing corporations (OMCs) reportedly wanted a raise in their margins on both products from the current Rs. 3.68 per liter to Rs. 7 per liter.
However, this would be discussed separately to ensure that dealers received the advantage starting on August 1 and OMCs on September 1 in order to gradually raise prices.
To read our blog on “Government to end import restrictions on luxury items,” click here.
