Petrol, diesel prices likely to rise as ECC reviews profit hike proposal

ISLAMABAD: Consumers may soon face an increase in petrol and diesel prices, as a proposal to raise profit margins for oil marketing companies (OMCs) and fuel dealers has been forwarded to the Economic Coordination Committee (ECC) for approval.

According to official documents, petrol and diesel prices could rise by up to Rs 2.40 per litre if the proposed adjustments to dealer and OMC margins are approved. The summary recommends increasing profit margins from the current Rs 1.10 to Rs 1.28 per litre.

At present, OMCs earn Rs 7.87 per litre on both petrol and diesel, while fuel dealers receive a commission of Rs 8.64 per litre.

The proposed changes will only take effect after the ECC grants its approval and the federal cabinet gives final ratification. If cleared, the price hike will add further pressure on consumers already grappling with rising living costs.

PETROL PRICE REDUCED

Earlier, at the start of the current fortnightly price update, Prime Minister Shehbaz Sharif had approved a reduction in the prices of petroleum products effective from December 1, 2025.

The Oil and Gas Regulatory Authority (OGRA) moved the summary to the prime minister, which resulted in petrol price falling by Rs2, to Rs 263.45 per litre and high-speed diesel seeing a larger reduction of Rs4.79 to Rs279.65 per litre.

That adjustment came as part of the government’s fortnightly review to provide relief to consumers amid fluctuating global oil prices.

The anticipated downward trend came after increased global supplies, following the reopening of units at Kuwait’s Al-Zour Refinery, one of the largest refining complexes in the Gulf. However, with the new summary, the prices may be hiked once again.