OMCs have suggested to the govt to include at least 1% operational losses of pipelines in the Inland Freight Equalisation Mar-gin. PHOTO: FILEAs oil marketing companies (OMCs) have refused to bear operational losses in the transportation of petrol through a pipeline, the government is likely to pass on these losses to the oil consumers. The oil industry has said that they did not have enough margins and therefore they could not bear operational losses of the pipeline. OMCs have suggested to the government to include at least 1% operational losses of pipelines in the Inland Freight Equalisation Margin (IFEM). Energy Regulation Board of Zambia/Tanzania also provides terminal losses allowance and transportation losses at 0.5% for gasoline.

Source: The Express Tribune April 21, 2021 03:33 UTC