ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet has approved a supplementary grant of Rs55.48 billion for the disbursement of Price Differential Claims (PDCs) to Oil Marketing Companies (OMCs)/ refineries for the first fortnight of May 2022, besides allowing the Trading Corporation of Pakistan (TCP) to explore the possibility of import of 200,000 MT of urea on government-to-government (G2G) basis and on deferred payment.

The ECC meeting presided over by Finance Minister Miftah Ismail on Monday on a summary of Petroleum Division with respect to reimbursement of PDCs of OMCs and refineries approved supplementary grant of Rs55.48 billion after detailed discussion.

The meeting was informed that the price differential is to be paid to the OMCs/ refineries by the government as a subsidy in the wake of the government’s decision to keep the petroleum products’ prices fixed at the level notified on 1st March 2022.

The Petroleum Division further informed due to the continuously rising trend of oil prices in the international market, the quantum of subsidy has been on the higher side.

Price differential claims of OMCs/refineries: Rs68.81bn supplementary grant approved by ECC

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 the next financial year and requested for allowing import of urea from an international market in order to stabilize the local market.

The ECC after discussion allowed the TCP to explore the possibility of import of 200,000 MT of urea on G2G basis and on deferred payment.

The meeting of the ECC was attended by Federal Minister for Industries and Production Makhdoom Syed Murtaza Mehmood, Minister of State for Finance and Revenue Dr Aisha Ghous Pasha, Minister of State for Petroleum Musadik Masood Malik, federal secretaries and senior officers.

Copyright Business Recorder, 2022