Nov 26, 2021: The All Pakistan Petrol Pump Dealers Association (APPDA) called off the nationwide strike after successful negotiations with the government on profit margins on petroleum products.

The federal government and the association agreed that dealers’ margin on petrol would be increased by Rs 0.99 per liter while on high speed diesel (HSD) it would be increased by Rs 0.83 per liter. Information Minister Fawad Chaudhry also confirmed the development in a tweet on Thursday night.

Against the association’s demand of increasing the dealer margin to 6% on petroleum products (approximately a hike of Rs5 per litre on petrol), the government has agreed to raise it only by Re0.99 per litre on petrol.

In a statement, the minister said that some elements were pressuring the government to increase the profit margin on sale of petroleum products by Rs 9 per liter.

Hammad Azhar, the energy minister said that the government could not increase the margin by Rs. 9 per liter to please some oil marketing companies. The minister said that the government was aware of the problems faced by the owners of petrol pumps, adding that the government would accept their legitimate demands. A summary of the increase in profit margins of petroleum dealers, he said, had already been transferred to the Economic Co-ordination Committee (ECC) and the ECC would decide on the matter at its next meeting.

The dealers association suggested that in the subsequent adjustment (during June, 2022) the margins may be fixed in percentage terms and the Petroleum Division will put its best efforts to obtain approval of the competent forum, for revision of dealers’ margin up to 4.40% of the selling price.

This arrangement of enhancing margin presently by 25% and subsequent readjustment after 6 months will ensure the safety and security of the business of the petroleum dealers without passing the extra burden to the general public. Both parties agreed to work mutually for the betterment of the country, the agreement said.

On the call of the PPDA countrywide strike started from Thursday morning till an indefinite period which triggered panic buying on Wednesday.

Stay tuned to BaaghiTV for latest news and Updates!