The second round of discussions between the Pakistan Petroleum Dealers Association and the government about margins on petroleum products has come to a good conclusion after a lengthy 7-hour negotiation session on Monday evening at PSO House in Karachi.
According to people with direct knowledge of the situation, the agreement has been formally recorded after both parties gave their assent.
Currently waiting to sign the contract are representatives from the Ministry of Petroleum, OGRA, and petroleum dealers.
In the meeting, the ministry initially suggested a rise in the margin of Rs. 1.64 per litre, but the petroleum dealers objected. But as the meeting went on, the dealers finally agreed to the plan.
A leader of the group, Malik Khadim Baksh, confirmed the change and said that rather than a one-time increase, the margin will be adjusted slowly in four stages over intervals of 15 days.
Petroleum Dealers Profit Margins Increase
He stated that the margin will increase by 41 paisa per liter every 15 days with the goal of reaching the full advised margin in two months.
The final phase is slated to be finished by September 30. The approved increase in the dealer’s margin is set to go into effect on August 1.
Petroleum dealers were pushing for a significant 5 rupee per litre rise on their current margin of 6 rupees per litre prior to this decision.
The rise was tied to the need that pump personnel receive an 8-hour workday and a minimum compensation of Rs. 25,000 per month, according to the Minister for Petroleum Affairs.
To determine the costs of petroleum dealers, information from more than a thousand gas stations in both urban and rural locations was gathered over the course of the last two days. Based on this study, a proposal for a 1.64 rupee per litre hike was developed.
In an earlier warning, the dealers threatened to permanently close their gas stations since the outgoing administration had broken its commitment to raise their profit margins to 5%.
Abdul Sami Khan, a spokesperson for the association, stated during a news conference at the Karachi news Club on Thursday that due to the protracted strike, gasoline stations will only be open for two days throughout the month of Muharram, specifically on the 9th and 10th.
The current margin per litre, according to him, is Rs. 6, but the PPDA has been calling for a raise of Rs. 5 to make it Rs. 11 per litre.
Abdul Sami claimed that the administration was ignoring the widespread Iranian gasoline and fuel smuggling.
The illicit selling of Iranian gasoline and diesel, according to a PPDA spokeswoman, has significantly reduced the income of licensed petroleum merchants by 30%.
To read our blog on “Nationwide strike of Pak petrol station start from July 22,” click here.
