Petroleum Dealers Association's Strike Postponed

22 Jul 2023

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Petroleum Dealers Association's Strike Postponed

The Pakistan Petroleum Dealers Association (PPDA) had previously announced a nationwide strike of petrol pumps in protest of the government's failure to increase their profit margins. However, following a crucial meeting with State Minister for Petroleum Musadik Malik, the association has decided to defer the strike for 48 hours.

Profit Margin Demands

The PPDA had demanded a 5% increase in their profit margins, which currently stand at Rs. 6 per liter. The association argued that an increase of Rs. 5 would bring the margin to Rs. 11 per liter, allowing dealers to operate more sustainably. Though Minister Musadik Malik assured the dealers of an increase in their profit margins, he declined the 5% raise. Instead, the government plans to personally collect petroleum sales data from 2,000 to 3,000 petrol pumps to assess the appropriate profit margins.

Addressing Smuggling Concerns

The PPDA has also raised concerns about the rampant smuggling of Iranian petrol and diesel. This unauthorized sale of fuel has led to a significant 30% decline in the revenues of authorized petroleum dealers.

Seeking a Sustainable Solution to Avoid Fuel Crisis

As the 48-hour window begins, both the dealers and the government will be searching for a sustainable solution that addresses the concerns of both parties. The outcome of the talks will have far-reaching implications for the fuel industry in Pakistan.

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