Pakistan’s fuel sector is facing fresh challenges as both petroleum dealers and oil marketing companies have made demands to the government.
The Petroleum Dealers Association (PDA) has written to Petroleum Minister Musadik Malik, requesting an increase in their profit margin.
They argue that their business costs have risen significantly since the last margin hike in September 2023, under the previous government. They’re pushing for a similar increase as witnessed then, which saw margins jump by Rs 1.64 per liter.
Similarly, the Oil Companies Advisory Committee wrote to the Chairman of OGRA, advocating for a change in the methodology used to determine oil prices. They proposed that the current rate of the dollar should be utilized during price calculations, rather than relying on fortnightly average rates.
OCAC Secretary Nasir Zaidi while speaking to Samaa TV emphasized the stability of the dollar and asserted that using the current rate would ensure greater transparency in determining oil prices.
The IMF’s demand for reinstated taxes has already pushed pump prices up, and these additional requests could further impact the situation. It remains to be seen how the government will respond to the demands of the petroleum dealers and oil marketing companies.
