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ECC okays increase in profit margins for petroleum dealers and OMCs – SUCH TV
The Economic Coordination Committee (ECC) of the Cabinet on Tuesday approved revising the profit margins of oil marketing companies (OMCs) and petroleum dealers on petrol and high-speed diesel. The meeting was chaired by Finance Minister Senator Muhammad Aurangzeb.
The adjustments, linked to the National CPI for 2023–24 and 2024–25, have been capped between 5% and 10%. The ECC decided that half of the approved increase will be implemented immediately, while the remaining half will depend on digitisation progress, with the Petroleum Division to report back by June 1, 2026.
According to sources, the margin for OMCs on petrol has been increased by Rs1.22 per litre, while the dealers’ commission has risen by Rs1.34 per litre. The same increases apply to high-speed diesel.
New vehicle-import scheme
The ECC endorsed amendments to the vehicle import procedure, retaining only the transfer-of-residence and gift schemes. Under the revised framework, commercial-import safety and environmental standards will apply, the allowable import gap has been extended from two to three years, and imported vehicles will remain non-transferable for one year.
Restrictions on chloroform imports
The ECC also approved restrictions on imports of Trichloromethane (chloroform) due to its carcinogenic and toxic properties. Going forward, chloroform may only be imported by pharmaceutical companies and only with a DRAP-issued NOC.
On a summary submitted by M/s Ghani Glass seeking a concessionary gas/RLNG tariff, the committee ruled the request untenable, noting that such subsidies are no longer allowed and that broader export-support measures are already underway.
Power sector and circular debt
The committee reviewed the Circular Debt Management Plan for FY 2025–26 presented by the Power Division.
The ECC directed the Power and Finance Divisions to prepare a medium-term strategy aimed at gradually reducing fiscal support.
It also instructed the Power Division to establish a monitoring mechanism with distribution companies to ensure compliance with targets committed to the government.
Technical grants and institutional reforms
The ECC approved a technical supplementary grant of Rs1.28 billion for the Pakistan Digital Authority (PDA) to support digital transformation across government departments.
It also authorised additional development funds for the Cabinet Division for FY26, as proposed by the Interior and Narcotics Control Division.
In addition, the committee approved allocating Rs5 billion to the Housing and Works Division through a technical supplementary grant for the current fiscal year.
On a summary by the Ministry of National Food Security and Research, the ECC endorsed the creation of a special-purpose company to wind up Passco and settle its outstanding liabilities.
It authorised the company’s incorporation, administrative and financial arrangements, and necessary regulatory exemptions, along with appointing initial subscribers and interim management.
The company will be dissolved once its mandate is fulfilled.
Additionally, the committee accorded in-principle approval for the release of budgetary allocation for PIA Holding Company Ltd (PIAHCL) to meet pension and medical related expenses of the PIACL employees.
The meeting was attended by Minister for Petroleum Ali Pervaiz Malik, Minister for Power Sardar Awais Ahmad Khan Leghari, Minister for Investment Board Qaiser Ahmed Sheikh, along with federal secretaries and senior officials from the concerned ministries, divisions and regulatory bodies.
The Bank of England has cut interest rates to the lowest level in nearly three years, as it said measures in the Budget will help bring down inflation quicker than previously thought.
The Bank’s Monetary Policy Committee (MPC) voted to reduce rates from 4% to 3.75%.
Governor Andrew Bailey said the UK has “passed the recent peak in inflation and it has continued to fall”, allowing the MPC to cut borrowing costs for the fourth time this year.
It takes the bank’s base interest rate to its lowest level since early 2023.
The nine-person committee voted five-to-four for a cut, with Mr Bailey among those preferring to lower rates at the Bank’s final meeting of the year.
The decision comes after official figures showed Consumer Prices Index (CPI) inflation fell sharply to 3.2% in November, from 3.6% in October.
Minutes of the MPC’s meeting read: “This was above the 2% target but, following the Budget announcements on administered prices and indirect taxes, headline inflation was now expected to fall back more quickly in April, to closer to 2%.”
It means CPI will near the Bank’s target level considerably earlier than the early 2027 timeframe that it had forecast in November.
Measures in the autumn Budget, delivered by Chancellor Rachel Reeves last month, are likely to lower CPI inflation by around 0.5 percentage points, according to the MPC.
This includes one-off support for household energy bills and freezing fuel duty which will kick in from April next year.
“We still think rates are on a gradual path downward,” Mr Bailey said.
“But with every cut we make, how much further we go becomes a closer call.”
Meanwhile, the MPC said it was expecting the economy to show no growth over the final quarter of 2025.
This comes after official data showed a 0.1% contraction in October, which was weaker than it had been expecting.
Meagre economic growth as well as a weakening jobs market and slower pay growth pointed to underlying inflation pressures reducing, the Bank said.
However, the four MPC members who voted to keep interest rates unchanged were more concerned about prolonged inflation persistence, particularly within the services sector and among wage growth.
Getty ImagesInsurers need to do more to improve how they handle claims and make it clearer to customers what their policies cover, the UK’s finance regulator has said.
The Financial Conduct Authority (FCA) was responding to a “super-complaint” by consumer group Which? about the home and travel insurance sectors.
The regulator acknowledged some problems needed addressing, and said it would expand its scrutiny of how claims are processed and how clear policies are to customers.
Consumer groups said the FCA must follow this up with strong action and see it as a first step to fundamental reform.
A super-complaint is rare, and only used by consumer groups when they believe a large number of people are being significantly harmed by practices across a particular sector.
Consumer group Which? had argued that the home and travel insurance sectors were “broken”. It said that in some cases making a claim to an insurance company could be a worse experience than the distress of the original incident.
The super-complaint was based on three areas of concern. The first was the way that claims are handled, with many being outsourced by insurers to specialists.
The second was the sales practices of insurers, which the consumer group argued were inappropriate and led to widespread confusion over what was covered in a policy.
Finally, it accused the FCA, as the regulator, of failing to provide an appropriate degree of protection for consumers.
Getty ImagesMillions of people across the UK take out insurance policies they hope they will never need to draw on.
Some 22 million home insurance policies were in force last year, with consumers paying more than £7bn in premiums. During the year, consumers made almost 900,000 claims, with insurers paying out a total of £3.2bn.
There were more than 6.8 million travel insurance policies, with premiums of £1.2bn paid last year. Some 600,000 claims led to payouts of more £400m.
But Which? highlighted that acceptance of claims and subsequent payouts were much less likely among home and travel insurance than motor and pet policies.
The FCA found that in 2024, 99% of motor claims were accepted, compared with 80% of standalone single trip travel claims and 74% of home content-only claims.
The regulator said that this, in part, reflected the lower levels of understanding among consumers of what their insurance policy covered.
Graeme Reynolds, director of competition at the FCA, said the regulator would “expand our existing workplan” to ensure improvements to the claims process and consumer understanding of their cover.
“We will continue to hold firms and their senior leaders to account for making improvements, to help build trust and make sure people get fair value insurance,” he said.
The Association of British Insurers (ABI), which represents companies, said the improvements demanded by the FCA were “a top priority” for the sector.
The FCA said it had already addressed various areas of concern in the sector, but consumer groups – including Which? – said more action was needed.
Rocio Concha, Which? director of policy and advocacy, said the FCA must now bring about meaningful change for consumers.
“These issues have been allowed to fester for years, so the FCA must now seize the opportunity to take strong action to stamp out widespread bad practice and issues with how the markets are working,” she said.
James Daley, managing director of consumer group Fairer Finance, said: “The [FCA] response is unlikely to be sufficient to get to grips with the many and growing problems in this sector.
“The insurance market is caught in a race to the bottom on price – leading to the hollowing out of products, as well as poorer claims experiences.”
Mahindra’s New Tata Sierra Rival SUV: Mahindra has several new models lined up, including petrol, diesel, hybrid and electric SUVs across various segments. One of the most talked-about upcoming products is a new midsize SUV that will take on the Hyundai Creta and Tata Sierra. Mahindra has not officially shared product details yet. Still, this new SUV is expected to carry the XUV badge. It will likely be built on Mahindra’s new NU_IQ modular platform. This platform supports ICE, hybrid and electric powertrains. That gives the brand a lot of flexibility for future models.
Reports suggest this Sierra rival could be the production version of the Vision S concept. Mahindra showcased this concept on Independence Day earlier this year. Some reports also hint that the final model might join the Scorpio family lineup.
The Vision S concept has a bold design. At the front, it gets Mahindra’s Twin Peaks logo and triple vertical LED lights on either side. The headlamps have an inverted L shape. The bumper looks sporty and houses radar and parking sensors. A raised bonnet and pixel-style fog lamps add to the tough look.
From the side, the SUV looks off-road ready. It has a tall stance, massive cladding and wheel arches, and large 19-inch wheels with red brake calipers. The concept even shows a jerry can and a side ladder. Some of these features may not make it to the final version or could be offered as accessories.
At the rear, the concept gets inverted L-shaped tail-lamps, pixel lighting on the bumper and a spare wheel mounted on the tailgate. Inside, the Vision S shows a modern cabin. It has a new steering wheel with Vision S branding, a large touchscreen with NU UX software, wireless phone connectivity and a panoramic sunroof.
The cabin uses dual-tone upholstery across seats, doors and dashboard. The visible fuel cap suggests an ICE setup. The production version is expected to come with petrol and diesel engine options. Mahindra’s new Sierra rival is likely to hit the market around 2027.
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