Petroleum Dealers Call Off Strike

ISLAMABAD: The petroleum dealers Thursday called of strike after a consensus reached with the government agreeing for enhancement of 99 paisas in the existing margin of petrol (Rs 3.91/liter) and 83 paisas in the existing margin of HSD (Rs3.30/liter).

According to an Ministry of Energy’s press release, multiple consultation sessions were held, in the background of revision of margins of petroleum products, with Pakistan Petroleum Dealers Association led by Chairman Abdul Sami Khan.

“Resultantly, the Dealers’ Association has called off its strike,” it added.

It said that the proposal for 25 percent increase in the margin of dealers will cover all delays in the revision of margin in the past and would also help dealers in mitigating the impact of inflation.

The Petroleum Division has assured that it will put all its endeavors to defend the said proposal of 25 percent increase in the existing margin before the Economic Coordination Committee of the Cabinet and the Federal Cabinet so that this historic relief to the Petroleum Dealers in the shape of sizeable enhancement in their margins becomes a reality.

“All parties clearly understand that passing on the extra costs to the general public/ consumers of petroleum products is not viable,” the ministry said.

However, the Petroleum Division assured the Dealers Association that after 6 months (during June, 2022) margins will be readjusted according to the level of inflation prevalent at the time.

The Dealers Association suggested that in the subsequent adjustment (during June, 2022) the margins may be fixed in percentage terms and Petroleum Division will put its best efforts to obtain approval of the competent forum, for revision of dealers’ margin up to 4.40 percent of the selling price excluding dealers’ margin.

While agreeing with the proposal of Dealers Association in principle, the Division will make best efforts to get it approved through the competent forum.

This arrangement of enhancing margin presently by 25 percent and subsequent readjustment after 6 months will ensure safety and security of the business of the Petroleum Dealers without passing the extra burden to the general public.

Both parties agreed to work mutually for the betterment of the country.