Web desk: The Pakistan Petroleum Dealers Association (PPDA) has threatened to close petrol pumps nationwide if the government does not meet its demands on dealers’ margins, on Friday.
PPDA Chairman Abdul Sami Khan said the government has rejected the association’s request for an 8 per cent margin on petroleum products. He further added that it is not feasible to operate on a lower margin.
He warned that petrol pumps across the country would be shut if the government failed to raise the margin. He also gave the authorities 10 days to review the matter.
Currently, dealers receive a margin of 3.12 per cent, and the association seeks an increase to 4.88 per cent. It suggests the 8 per cent could be implemented gradually.
The strike threat comes amid concerns over a potential increase in petroleum prices.
The government has approved raising the profits of oil marketing companies (OMCs) and dealers.
A summary prepared by the Petroleum Division was presented to the Economic Coordination Committee (ECC). And after cabinet approval, petrol and diesel prices are expected to rise by Rs 2.40 per litre.
Sources indicate that the profit margin for OMCs and dealers may increase from Rs 1.10 to Rs 1.28 per litre.
This is while the Oil & Gas Regulatory Authority (OGRA) had earlier recommended an increase to Rs 1.35 for companies and Rs 1.40 for dealers.
If petrol pumps across Pakistan were to shut down due to a strike, it could cause serious problems.
Recently, goods transporters were also on strike.
However, negotiations between the government and goods transporters concluded successfully on Friday.
The transporters have announced an immediate end to their strike, sources confirmed.
Petrol prices expected to drop
Pakistanis may get some relief at the fuel pump as petroleum product prices are expected to drop by up to Rs 11 per litre starting 16 December, according to sources on Friday.
The relevant department has reportedly prepared preliminary calculations for the price reduction.
Sources indicate that petrol may decrease by Rs 0.36 per litre, while high-speed diesel could fall by Rs 11.85 per litre.
Additionally, kerosene oil is expected to drop by Rs 11.70 per litre and light diesel by Rs 10.01 per litre.
The Oil & Gas Regulatory Authority (OGRA) is set to send the summary of proposed prices for approval on 15 December.
