WHILE goods transporters are already on strike, the suspension of hundreds of thousands of goods-carrying vehicles has disrupted cargo movement, affected industrial and export supply chains and created difficulties for businesses dependent on the regular movement of raw materials and finished goods. The Petroleum Dealers’ Association has now also warned of a nationwide shutdown, raising the prospect of further disruption to economic activity.
The Association is demanding that dealers’ margin on petrol be increased to eight per cent of the retail sale price. The Association says the existing margin is insufficient to meet the rising costs of running petrol pumps, including electricity and gas bills, employees’ salaries, maintenance and other operating expenses. With inflation significantly increasing the cost of doing business, dealers argue that their present earnings no longer provide a viable return. The government cannot afford to ignore these concerns, but any decision to increase dealers’ margins must also take into account its impact on consumers. A higher commission could eventually put additional pressure on petroleum prices, affecting transport costs and, consequently, the prices of everyday goods. At a time when households are already struggling with the cost of living, this aspect requires careful consideration. The recently introduced 24-hour fuel price change mechanism has also added to the dealers’ concerns. According to the Association, frequent price changes create administrative difficulties and financial uncertainty for petrol pump operators. These concerns deserve to be examined seriously. The government should engage with the Dealers’ Association without delay and examine the basis for their demand for an eight per cent margin. A middle ground should be possible, with the government considering some adjustment in the dealers’ margin while taking measures to shield consumers from any undue increase in fuel prices. At the same time, no sector should be allowed to dictate its terms through strike threats or hold consumers and economic activity hostage. Legitimate grievances must be addressed through negotiation, but decisions affecting the wider public interest have to be taken by the government after weighing all sides.
