Petrol Pumps Dealers Association called off nationwide strike

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ISLAMABAD: The All Pakistan Petrol Pumps Dealers Association on Thursday called off a nationwide strike against the government's failure to increase their profit margin.

The government and the association's chairman, Abdul Sami Khan, reached the agreement after holding day-long negotiations. Adviser to the Prime Minister on Finance Shaukat Tarin, Energy Minister Hammad Azhar and Petroleum Secretary Dr Arshad Mahmood were part of the government team.

Speaking to Dawn, association spokesperson Jahanzaib Malik confirmed that petroleum dealers had called off the nationwide strike. He said that they had initially demanded a six per cent increase in their profit margin, but the government had agreed to a 4.4pc increase.

Malik said that petrol dealers were charging Rs3.91 per litre and would now charge Rs4.90. He said that the price of petrol would be increased after the government announced the rates for next month.

He said that agreement would be implemented from next month, adding that the government had vowed to review the profit margin after some time. Information Minister Fawad Chaudhry also shared the development in a tweet.

Meanwhile, a handout issued by the Petroleum Division (PD) stated that all stakeholders appreciated the division's proposal for enhancement of 99 paisas in the existing margin of petrol and 83 paisas in the existing margin of high speed diesel.

"The proposal for a 25pc 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 PD has assured that it will put all its endeavours to defend the said proposal [...] before the ECC and the federal cabinet so that this historic relief to petroleum dealers in the shape of sizeable enhancement in their margins becomes a reality," the statement said.

It added that all parties clearly understood that passing on extra costs to the general public was not viable.

"The PD assured the association that after six months (during June 2022) margins will be readjusted according to the level of inflation prevalent at the time. The association suggested that in the subsequent adjustment the margins may be fixed in percentage terms and the petroleum division will put its best efforts to obtain approval of the competent forum, for revision of dealers’ margin up to 4.40pc of the selling price excluding dealers’ margin.

"While agreeing with the association's proposal in principle, the PD will make its best efforts to get it approved through the competent forum," the statement said.

"This arrangement of enhancing margin presently by 25pc and subsequent readjustment after six months will ensure safety and security of the business of petroleum dealers without passing the extra burden to the general public," the statement concluded.

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