PD notifies Rs. 1.34/litre increase in petroleum dealers’ margin

ISLAMABAD: Petroleum Division (PD) has notified an increase of Rs1.34 per litre in the profit margin of petroleum dealers following ratification of the Economic Coordination Committee (ECC) decision by the federal cabinet on August 20, 2026.
On August 14, 2026, the ECC, in a meeting presided over by Finance Minister Senator Muhammad Aurangzeb, approved a 15.5 per cent increase of Rs1.34 per litre in the dealers’ margin on petrol (Motor Spirit) and High-Speed Diesel (HSD), raising it from Rs8.64 to Rs9.98 per litre.
Petroleum Division, after holding deliberations with petroleum dealers, was of the view that the existing dealers’ margin of Rs8.66 per litre on MS and HSD needed to be increased by Rs1.34 per litre, based on the annual National CPI for 2023-24 and 2024-25, subject to a floor of five per cent and a ceiling of 10 per cent.
Finance Division, through an Office Memorandum dated August 6, 2026, conveyed its endorsement of the proposed increase in margins.
However, Finance Division also suggested that instead of complete de-linking of the dealers’ margin from the existing mechanism, which could adversely affect the government’s digitisation targets, partial de-linking may be considered to the extent of 75 per cent of the increase.
The decision is expected to provide relief to petroleum dealers by enhancing their regulated profit margin amid rising operating costs and inflation. Ends