Both parties agree to incrementally increase Rs1.64 during talks at Karachi’s PSO House.
ISLAMABAD: Following an intense 7-hour negotiation session at PSO House in Karachi, the second round of talks between the Pakistan Petroleum Dealers Association and the government has successfully concluded, reaching an agreement on margins for petroleum products.
Sources with inside information reveal that the parties have officially documented the agreement, after mutual consent. Representatives from the Ministry of Petroleum, OGRA , and petroleum dealers are now ready to sign the agreed-upon document.
In the meeting, the ministry initially proposed a margin increase of Rs1.64 per litre, which faced resistance from the petroleum dealers. However, as the session progressed, the dealers eventually accepted the proposal.
Malik Khadim Baksh, a leader of the association, confirmed the development. He stated that the margin will be incrementally increased in four stages over 15-day intervals, rather than a one-time increase.
The margin will see a 41 paisa per litre increase every 15 days, aiming to achieve the full recommended margin within two months, according to Malik Khadim Baksh.
The approved increase is set to be implemented on August 1. The final stage will be completed by September 30.
Petroleum dealers sought a 5 rupee per litre increase from their existing 6 rupee per litre margin. The Minister for Petroleum Affairs linked the increase to a minimum monthly wage of Rs25,000 for pump workers and an 8-hour working day.
To assess the expenses of petroleum dealers, data from over a thousand petrol pumps in rural and urban areas were collected in the past two days. The proposed Rs1.64 per litre increase was formulated based on this analysis.
The dealers previously issued a warning, threatening an indefinite shutdown of petroleum pumps due to the outgoing government’s failure to increase their profit margins to 5%.
Abdul Sami Khan, spokesperson for the association, announced during a press conference at the Karachi Press Club that petrol pumps would operate only on the 9th and 10th of Muharram due to the prolonged strike.
The current margin per liter stands at Rs6, but the PPDA demanded an increase of Rs5 to bring it to Rs11 per liter.
Abdul Sami accused the government of ignoring the rampant smuggling of Iranian petrol and diesel, leading to a significant 30% revenue decline for authorized petroleum dealers.
