Amid continuing slide in oil prices, the government is today expected to increase the commissions of marketing companies and petroleum dealers.

This would be one of the key items on the agenda of the meeting Economic Coordination Committee (ECC) of the Cabinet to be presided over by Finance Minister Ishaq Dar. The committee is also to consider changing pricing mechanism for compressed natural gas (CNG) and allow tax free supply of proposed imported liquefied natural gas (LNG) to CNG stations.

A summary for the ECC seen by Dawn suggest the OMC’s margin on high speed diesel (HSD) currently stood at Rs1.89 per litre which has been proposed to be increased to Rs2.05 per litre, an increase of 19 paisa per litre.

Likewise, the commission for dealers currently at Rs2.30 per litre has been proposed to be jacked up to Rs2.70 per litre.

A study conducted by the Pakistan Institute of Development Economics (PIDE) had proposed up to 30pc increase in the margins of dealer and oil companies but opposed price deregulation saying the Pakistani market was not fit for competition and any such move could lead to increased monopoly by a few because of bigger size of older companies.