The Pakistan Petroleum Dealers Association on Thursday announced to end the countrywide strike after talks between PPDA and the Petroleum of Pakistan government turned out successful.
The parties agreed on an increase of Rs0.99 per liter in the profit margin of the petrol dealers, according to a notification issued by the Petroleum Division. With an increase of 99 paise, dealer profit on every liter of petrol will increase to Rs4.90. Dealer profit on high-speed diesel will increase by 83 paise to Rs4.13 per liter, the notification read.
The Pakistan Petroleum Dealers Association had on Wednesday announced a nationwide petrol strike, starting Nov. 25, for an indefinite period of time due to “low-profit margins”.
Officials from the ministry of petroleum told the media that a summary seeking a 25% increase in profit margin, equal to 0.99 Pakistani rupees, has already been sent. The government has also assured the petrol dealers that it will review their profit margins twice a year.
Federal Minister for Information and Broadcasting Fawad Chaudhry confirmed the news on his official Twitter handle.
Earlier today, the ministry of energy and petroleum spokesperson had said that the ministry has sent a proposal for approval seeking an increase in the margins of oil marketing companies (OMCs) to the Economic Coordination Committee (ECC).
“The dealers’ margin has been increasing by Rs0.20 in the past,” he said, adding that this time a request for an increase of Rs0.99 has been made which will “offset all past losses incurred by the dealers.”
The government is reportedly planning to further increase petroleum prices as part of the agreement it struck with IMF earlier this month to release around $1 billion of a $6 billion financing facility. The government has already raised fuel prices several times this year and will continue to increase it Rs.5 per month as part of the petroleum levy under the IMF’s condition until it touches Rs.30 hike.