Petrol Pump Dealers Call Off Strike as Govt OKs Margin Hike

Pakistan Petroleum Dealers' Association called off a nationwide strike after the ECC approved a Rs1.34 per litre increase in dealers' margins, raising total margins to Rs10. Protests continue over other demands. ISLAMABAD: The Pakistan Petroleum Dealers' Association (PPDA) on Friday called off its planned nationwide strike after the government approved an increase in the dealers' margins on petrol and high-speed diesel, averting the closure of filling stations across the country from Saturday. The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, approved a revision in the dealers' margins during its meeting, according to the Finance Ministry. The PPDA said the government had approved an increase of Rs1.34 per litre, taking the dealers' total margin to Rs10 per litre from the existing Rs8.64. The Prime Minister's Office, however, had not independently confirmed the increase by Friday evening. PPDA Chairman Malik Khuda Bakhsh said Petroleum Minister Ali Pervaiz Malik had informed him that Prime Minister Shehbaz Sharif had approved the Rs1.34-per-litre increase, prompting the association to withdraw its call for a strike. The association had issued a 72-hour ultimatum to the government earlier this week, warning that petrol pumps nationwide would shut indefinitely from 6am on August 15 if its demand for an eight per cent increase in dealers' margins was not met. 'Based on the government's assurances,' the PPDA said, it had postponed Saturday's planned strike. However, the association warned that its protest would continue until all outstanding demands were addressed. The PPDA has maintained that dealers' margins have remained unchanged for around three years despite rising operating costs. Its vice chairman, Tariq Hassan, claimed that approximately $50 million owed to petroleum dealers remained outstanding. The association had also demanded a shift from the government's newly introduced daily fuel-price mechanism to a monthly system. The government, however, rejected the demand and said daily price adjustments would continue. Bakhsh said the easing of tensions in the Middle East could potentially allow petroleum prices to return to a seven- or 15-day revision cycle, rather than being adjusted daily. The government introduced daily fuel-price revisions last month amid volatility in international oil markets and the regional conflict. The latest decision followed brief talks between petroleum dealers and Petroleum Minister Ali Pervaiz Malik in Islamabad on Wednesday. The minister had assured the delegation that the proposed Rs1.34-per-litre increase, pending for nearly two years, had been forwarded to the ECC for approval. The government's approval has temporarily defused a dispute that threatened to disrupt fuel supplies nationwide and cause significant inconvenience to consumers and businesses.