ECC Approves Revision in Dealers' Margins, Petroleum Dealers call off strike

APPPOA Vice Chairman Thanks PM, Petroleum Minister for Resolving Margin Dispute

Business Desk

ISLAMABAD: In a major development, the Pakistan Petroleum Dealers’ Association (PPDA) on Friday called off its plans to begin a strike on Saturday after the government approved a proposed revision in the dealers’ margins.

The nod for the revision was also confirmed by the finance ministry in a statement. The Economic Coordination Committee had “deliberated on the matter regarding revision of dealers’ margins on motor spirit and high-speed diesel” during a meeting chaired by Finance Minister Muhammad Aurangzeb, the statement said, adding that a revision of the margin had been approved.

Federal ministers Rana Tanveer Hussain, Ali Pervaiz Malik and Ahad Khan Cheema, along with federal secretaries and senior officials from the relevant ministries and divisions, attended the meeting.

Meanwhile, the PPDA said the government had increased the petroleum dealers’ margin by Rs1.34 per litre, bringing the total margin to Rs10 per litre.

The PPDA had threatened the strike, demanding an eight per cent increase in the petroleum dealers’ margin. Currently, the dealers’ margins are Rs8.64 per litre.

As the PPDA Chairman Bakhsh announced during a press conference in Karachi that they were calling off the strike, he also said that petroleum product prices may once again be revised every 7 or 15 days, instead of being changed daily.

Last month, the government announced that it would start revising fuel prices on a daily basis, rather than the weekly system that had been in vogue in recent months. The government on Thursday rejected the dealers’ demand for monthly price fixing, adding that it will continue the daily price-fixing mechanism for petroleum products.

In its Friday statement, the PPDA said it “had postponed Saturday’s planned strike based on the government’s assurances”.

“However, the PPDA chairman warned that the association would continue its protest until all of its demands were accepted,” the statement added. The association’s vice chairman, Tariq Hassan, further said that “because dealers had not received an increase in their margin for the past three years, approximately $50 million belonging to petroleum dealers remains outstanding with the government”.

Vice Chairman of the All Pakistan Petrol Pump Owners Association, Nauman Ali Butt, confirmed the increase in dealers’ margins and thanked the prime minister and petroleum minister.

It is pertinent to mention here that on Wednesday, the PPDA issued a 72-hour ultimatum to the government over its failure to fulfil promises made by the petroleum minister to resolve their issues, especially the increase in margin to eight per cent on the retail sale price of petrol.

The association had warned that if the government failed to meet its demands within 72 hours, petrol pumps across the country would shut down indefinitely from 6am on Saturday (August 15) and would not reopen until those demands were met.

A delegation of petroleum dealers had also held brief talks with Petroleum Minister Ali Pervaiz Malik in Islamabad on Wednesday. In the meeting, the minister had assured the delegation that a Rs1.34 per litre increase in dealers’ margin, which had been pending for two years, had already been sent to the ECC and was awaiting approval from the Federal Cabinet.