Petroleum dealers call off planned strike as govt approves margin revision

AI Summary

The Pakistan Petroleum Dealers’ Association canceled a planned strike after the government approved an increase in petroleum dealers' margins by Rs1.34 per litre, raising the total margin to Rs10 per litre. The decision follows negotiations involving the Finance Minister and addresses unresolved demands that had threatened nationwide petrol station shutdowns.

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, which did not specify the amount. 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. 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. 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. More to follow