The government has reached an agreement with the fuel pump owners to increase their profit margins by Rs1.64 per litre on both petrol and diesel, compelling the dealers to call off their strike which was scheduled to start from Monday (July 24).
The increase in the margins would be made in phased manners over the next two-month (Aug-Sept) period to avoid a one-time surge in the prices of petroleum products, which would increase the burden of the already inflation-hit people.
Accordingly, the government would increase their margin in four equal parts of Rs0.41 per litre in each of the four forthcoming fortnightly pricing meetings.
The margins on both diesel and petrol currently stand at Rs7 per litre. The dealers, however, get Rs6.20 per litre after deduction of franchise fee and taxes.
While talking to The Express Tribune, former Pakistan Petroleum Dealers Association chairman Malik Khuda Baksh said the first increase of Rs0.41 per litre would be made with effect from Aug 1, 2023, while the last one would be made in mid-Sept 2023.
The government and the dealers reached the agreement during a marathon meeting which lasted for seven hours, it was learnt.
Speaking to the media at the conclusion of the meeting, PPDA Chairman Abdul Sami Khan said the dealers were reluctant to accept the increase in profit margin, which was significantly less than the promised one of 5%.
This 5% comes to around a total of Rs12 per litre. Currently, petrol and diesel prices are at Rs253 and Rs253.50 per litre, respectively.
“We, however, have accepted the government’s offer to avoid going on strike,” he said. He said they had reached an agreement signed by Oil and Gas Regulatory Authority chairman, director general of oil and PPDA chairman himself.
