Pakistan Rupee Exchange Rate
The Govt of Pakistan has successfully managed to convince petroleum dealers association to cancel their ‘strike’ as is agreed to increase the profit margin on petroleum products for the dealers by Rs1.64 per litre.
Abdul Sami Khan, the Chairman of the Pakistan Petroleum Dealers Association (PPDA), announced the deal that was reached in this matter. Initially, the government had proposed an increase of Rs1.64 per litre as the dealers’ margin, but the dealers had demanded Rs5 per litre at the beginning, considering the rising costs of their businesses. They deemed the initial offer as insufficient.
However, after further discussions, the dealers eventually accepted the government’s proposal. The increase in dealers’ margins will be implemented in four phases, with a rise of Rs0.41 per litre every fortnight. This gradual process will result in a total raise of Rs1.6 per litre over two months, bringing the dealers’ margin to Rs7.6 per litre, up from the current Rs6 per litre.
The situation escalated when the Pakistan Petroleum Dealers Association (PPDA) announced the shutdown of fuel pumps across the country from July 22, demanding a higher profit margin amid an inflation crisis. They had communicated their concerns to the State Minister for Petroleum, Musadik Malik, but no resolution was reached initially.
The association pointed out that the high-interest rates and inflation had significantly affected the businesses of fuel pump operators, leading to a 30% decline in sales. Moreover, they cited the issue of Iranian fuel being smuggled into the country, contributing to the challenges they faced.
However, after negotiations with the petroleum minister, who personally visited Karachi for discussions, the PPDA decided to defer their strike for two days. Ultimately, the government’s willingness to increase the profit margin on petroleum products helped to resolve the issue and prevent the nationwide strike.
