The Pakistan Petroleum Dealers Association (PPDA) has announced to postpone the nationwide strike for two days, which means all petrol pumps under the association will remain open across the country.
According to the details, State Minister for Petroleum, Musadik Malik, and the PPDA delegation held talks at the PSO headquarters to discuss hike in dealers’ margin. However, they were unable to reach an agreement after State Minister offered a hike of just Rs. 2.65 per litre against the dealer’s demand of Rs. 5 per litre.
After negotiations failed, the State Minister constituted a committee to review the hike in dealers’ margin and the committee will finalize their decision in the next 48 hours.
Earlier, PPDA Chairman, Abdul Sam Khan, said that consumer price index had increased to 38pc, while electricity and other utility rates had also spiked due to the Kibor rate, which has completely evaporated the dealer’s commission on petrol.
He added that his association was the largest in the country with more than 10,000 members. “We had an agreement in 1999 that we will receive a five pc profit margin which was decreased to four pc in 2004.”
Khan said the current incumbent government had changed the profit margin to Rs. 6 per litre, which means a profit margin of just 2.4pc that is not acceptable to the petroleum dealers. He added that situation is made worse due to smuggled Iranian petrol and diesel being sold freely, which led to a massive drop in sales.
The PPDA Chairman has said that all petrol pumps under the association will remain closed from tomorrow (July 22) until demands are met, which includes an increase in dealer commission.