Government approves revision in dealers’ margins, while PPDA says the increase takes the total margin to Rs10 per litre.
The Pakistan Petroleum Dealers’ Association (PPDA) has withdrawn its planned strike after the government approved a revision in the margins paid to dealers on petroleum products.
The decision came a day before the dealers were scheduled to suspend operations across the country. The PPDA had been demanding an increase in its margin, citing rising operating costs and financial pressures faced by filling station owners.
The Finance Ministry confirmed that the Economic Coordination Committee (ECC) approved the revision during a meeting chaired by Finance Minister Muhammad Aurangzeb. The ministry, however, did not disclose the exact amount of the approved increase in its official statement.
According to the PPDA, the government has raised the petroleum dealers’ margin by Rs1.34 per litre. The increase takes the total margin to Rs10 per litre from the existing Rs8.64 per litre.
The dealers’ association had initially sought an eight per cent increase in their margin. The demand had led to a standoff with the government and prompted the threat of a nationwide strike starting Saturday.
Following the government’s decision, PPDA Chairman Bakhsh announced in Karachi that the association had decided to call off the strike. The development is expected to prevent disruptions at petrol stations and ensure continued availability of petroleum products for consumers.
The ECC had considered the issue of revising dealers’ margins for motor spirit and high-speed diesel before approving the adjustment. The move is aimed at addressing the concerns of petroleum dealers while maintaining stability in the fuel supply chain.
Bakhsh also indicated that the government could reconsider the frequency of petroleum price adjustments. He said fuel prices might once again be revised every seven or 15 days rather than being changed on a daily basis.
The possible shift in the pricing mechanism could provide greater predictability for consumers, dealers and other stakeholders in the petroleum sector. However, any formal change in the frequency of fuel price revisions would depend on a government decision.
The resolution of the margin dispute has temporarily eased tensions between petroleum dealers and the government, with the PPDA ending its strike plan following the approved increase.