Petroleum dealers postpone strike for two days

ISLAMABAD: Petroleum dealers have decided to postpone the nationwide strike, they had initially planned to observe from Saturday, for two days following a meeting with Petroleum Minister Musadik Malik, who assured them of a upward revision of their profit margin.

Fuel station operators announced on Thursday declaring an indefinite strike set to commence tomorrow. Their demand was to more than double their profit margin, seeking an increase from the current 2.4 per cent to five percent.

The Pakistan Petroleum Dealers Association (PPDA) Information Secretary Noman Ali Butt said, “Petrol stations will remain closed until our demands are met.”

Read more: Petroleum dealers announce strike from July 22

According to the Dawn.com, the press release from the association highlighted the impact of interest rates and inflation on operators’ businesses, urging an increase in the dealership margin.

The PPDA, which claims to represent over 10,000 members, also cited a 30 per cent drop in sales due to Iranian fuel smuggling into the country.

The press release recounted past agreements, stating, “We had an agreement in 1999 that we will receive a five per cent profit margin which was decreased to four per cent in 2004.”

It criticized the government’s decision to set the profit margin at Rs6 per liter, leaving them with an unacceptable 2.4 per cent margin.

Meanwhile the PPDA Chairman, Abdul Sami Khan, confirmed that Malik had contacted him and they were scheduled to meet at 4 pm on Friday.

After their meeting, a joint statement was issued bearing the signatures of the Minister, the PPDA Chairman, and the Chairman of the Oil and Gas Regulatory Authority, Masroor Khan. The statement read, “Based on the discussion, it was agreed that there should be an upward reasonable revision in the dealer’s margin. The increased margins will be determined based on actual data acceptable to all concerned stakeholders. This revised margin number will be announced within the next forty-eight hours, i.e., on Monday, July 24, 2023.”

As a result of the meeting, the Pakistan Petroleum Dealers Associationdecided to defer their strike until Monday, July 24, 2023.