ISLAMABAD – A planned petrol pump strike, that could disrupted fuel supplies across Pakistan, has been put on hold after the government agreed to raise dealers’ margins by Rs1.34 per litre. With the margin now reaching Rs10 per litre, the immediate crisis has been averted, but one question remains, will the extra cost eventually land on consumers at pump?
A possible fuel shortage was avoided after the government agreed to increase the margin given to petroleum dealers, leading them to postpone their planned strike.
Economic Coordination Committee (ECC) of Cabinet approved Rs1.34 per litre increase in the dealers’ margin on Petrol and Diesel, and the increase takes total margin to Rs10 per litre.
The decision came after Pakistan Petroleum Dealers Association threatened to shut petrol pumps across the country on Saturday over its demand for better margins. ECC meeting was chaired by Finance Minister Muhammad Aurangzeb at the Finance Division. The committee reviewed a proposal from the Petroleum Division seeking an increase in dealers’ margins.
Following the government’s decision, petroleum dealers postponed their planned strike, easing concerns about possible disruptions to petrol and diesel supplies.
The issue gained urgency as dealers warned that rising operating costs were making it increasingly difficult to run petrol stations under the existing margin structure.
Pump Owners confirmed the margin increase and thanked government for addressing the demand. For motorists, the immediate outcome is straightforward as the threatened strike has been put on hold and petrol pumps are expected to stay open.
The bigger question, however, is whether the revised margin will eventually have any effect on petroleum prices for consumers.
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