Govt agrees to increase dealers margin to 4.4%
Pakistan Petroleum Dealers Association (PPDA) has called off the nationwide strike after the government agreed to increase their profit margin to 4.4%. Earlier, it was 3.9%. They wanted the government to increase it to 6%.
PPDA Chairman Abdul Sami Khan made the announcement.
Khan said that the government has also agreed to further increase the margin.
The Ministry of Energy released a statement late Thursday saying that it held multiple meeting with petroleum dealers association’s representavies..
“All stakeholders appreciated Petroleum Division’s proposal for enhancement of 99 paisas in the existing margin of Petrol i.e., PKR 3.91/liter and 83 paisas in the existing margin of HSD i.e., PKR 3.30/liter,” the statement said.
The ministry said that the “proposal for 25% increase in the margin of dealers will cover all delays in the revision of margin in the past and would also help dealers in mitigating the impact of inflation.”
Petroleum Division has assured that it will defend the said proposal of 25% increase before the Economic Coordination Committee of the Cabinet and the Federal Cabinet.
However, it is still unclear when the pumps will reopen as the PPDA chairman did not say anything in this regard.
PPDA went on nationwide strike on Thursday morning against what it considered unjust profit margins.
Motorists had to suffer as petrol pumps across the country were closed since early Thursday morning. Only company-owned, company operated petrol pumps were open. However, it made little difference as the number of company owned pumps is very low low compared to private petrol pumps.
Earlier in the day, it was reported that the federal government and the PPDA have opened channels for talks to end a nationwide strike by petrol pump owners.
Federal Energy Minister Hammad Azhar, who had earlier termed PPDA demand for increasing the dealers’ margin to 6% as “illegitimate”, appeared on SAMAA TV’s show Nadeem Malik Live where he admitted that their profit margin is insufficient.
Earlier, reports suggested that the government had offered to slightly increase dealers profit. In the past, it had offered an increase of 85 paisas on petrol and 60 paisas on diesel. Now it has increased the offer to Re1 on petrol and 70 paisas on diesel.