Petroleum dealers in Pakistan are expressing their discontent with the government’s failure to fulfill its commitment to increase their profits.
They had requested a higher compensation for their services, which the government had officially agreed to in writing. Unfortunately, as of the September 1 deadline, these promised adjustments have not materialized.
Abdul Sami Khan, the leader of the Pakistan Petroleum Dealers Association, is growing increasingly frustrated as the costs of operating their filling stations continue to rise, making it challenging to sustain their businesses with the current profit margins.
Khan has issued a warning that, unless the government takes action to address this issue promptly, they may be left with no choice but to close down their stations. This situation is a stark contrast to their earlier decision in July when the dealers had contemplated a station shutdown as a form of protest. They ultimately chose not to proceed with the shutdown after receiving assurances from the State Minister for Petroleum at that time, Musadik Malik.
However, given the persistent lack of resolution to their profit margin concerns, the dealers are once again discussing the possibility of station closures. Initially, their request was for a profit margin of 5%, which would have been equivalent to Rs12 per liter at the current fuel prices.
Earlier, 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.