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ECC Raises OMC and Dealer Fuel Margins, Paving Way for Mid-December Price Increase

Half the increase takes effect now with the rest tied to digitisation benchmarks due in 2026.

Overview

  • The Economic Coordination Committee approved revising margins for oil marketing companies and petroleum dealers on petrol and high-speed diesel, capped between 5% and 10% in line with CPI.
  • Sources indicate the change will lift petrol and diesel prices by roughly Rs2.40–2.56 per litre for the mid‑December fortnight, pending the formal rate notification.
  • The margin adjustment totals Rs2.56 per litre, with Rs1.28 applied immediately and the remainder contingent on progress digitising the fuel distribution network.
  • Per-litre increases comprise Rs1.22 for OMC margins and Rs1.34 for dealer commissions on both petrol and diesel, with initial implementation steps beginning Dec 10.
  • The Petroleum Division must report on digital compliance by June 1, 2026 to unlock the deferred portion of the margin hike.