- Dealers initially termed the hike of Rs 1.64 per liter as “inadequate”.
- The increase in margin will be implemented in four phases.
- After two months, the dealer’s margin will increase to Rs 7.64 per litre.
KARACHI: In an attempt to persuade petroleum dealers to call off their strike called last week, after hours of talks, the government agreed to increase their profit margin on petroleum products by Rs 1.64 per litre. news The information was given on Tuesday.
Abdul Sami Khan, President of the Pakistan Petroleum Dealers Association (PPDA), announced the agreement in this regard.
The government had proposed to increase dealers’ margin by Rs 1.64 per litre.
Dealers – who had initially demanded an increase of Rs 5 per liter – initially opposed the increase, calling it “insufficient” in the face of the increased cost of their business.
However, he later accepted the offer.
The increase in dealers’ margin will be implemented in four phases on the consumer price.
This will be increased by Rs 0.41 per liter every fortnight, and dealers will get the full hike of Rs 1.6 per liter in two months, which will increase dealers’ margin from the current Rs 6 per liter to Rs 7.6 per liter after 2 months.
Last week, the representative of petrol pump owners, PPDA, had announced the closure of fuel pumps across the country from July 22, demanding an increase in profit margins amid the inflationary crisis.
The association said in a statement that Minister of State for Petroleum Mussadiq Malik was informed about their concerns but to no avail.
The official release said that interest rates and inflation have affected the businesses of the operators and called for increasing the dealership margins.
It added that sales have dropped by 30% due to the smuggling of Iranian fuel into the country.
However, the next day, the PPDA deferred its strike for two days after the association members held talks with the Petroleum Minister, who had arrived in Karachi on Friday to persuade the PPDA to call off the nationwide strike.
