The Pakistan Petroleum Dealers Association (PPDA) has postponed its planned strike of petrol pumps across Pakistan for 48 hours after meeting with State Minister for Petroleum Musadik Malik. The minister assured the dealers that the government will increase their profit margins, but he did not agree to their demand for a 5% raise. Instead, the government will collect petroleum sales data from 2,000 to 3,000 petrol pumps to assess the appropriate profit margins for the dealers.
The PPDA had originally planned to shut down all petrol pumps from July 22 in protest against the government’s failure to increase their profit margins. The current margin per liter for dealers stands at Rs6, but the PPDA has been demanding an increase of Rs5 to bring it to Rs11 per liter. They have also accused the government of overlooking the widespread smuggling of Iranian petrol and diesel, which has caused a significant 30% decline in revenues for authorized petroleum dealers.
The postponement of the strike is a temporary measure, and the situation will be monitored closely. The PPDA has said that they will continue to discuss the issue with the government in the hope of reaching a final resolution.
Highlights:
- The PPDA represents over 70,000 petroleum dealers across Pakistan.
- The government has been under pressure to increase the profit margins for petroleum dealers due to the rising cost of living.
- The smuggling of Iranian petrol and diesel is a major problem in Pakistan, and it has a significant impact on the legitimate petroleum trade.
- The PPDA has threatened to go on an indefinite strike if the government does not meet demands.
