Petroleum dealers in Pakistan recently took a stand to address their concerns over profit margins, planning a nationwide strike to demand an increase. The strike was slated to commence on Saturday (22nd July), but after a meeting with Minister of State for Petroleum, Musadik Malik, the dealers agreed to defer it for two days till 24th July.
Substantial decrease in profit margins
Represented by the Pakistan Petroleum Dealers Association (PPDA), the dealers highlighted the challenges posed by high-interest rates and inflation on their businesses. They firmly requested a revision in the dealership margin to sustain their operations effectively.
One of the major issues raised by the PPDA was the significant drop in sales, amounting to 30%, which they attributed to the smuggling of Iranian fuel into the country. Citing historical agreements, the association emphasized that the profit margin was previously set at 5% in 1999 and later reduced to 4% in 2004. However, the current government’s decision to set it at 2.4%, equivalent to Rs6 per liter, was deemed unacceptable by the dealers.
Also read: Fuel Unavailable: Petrol Pumps Across Punjab Run Dry Due To ‘Fuel Shortage’
The deferral of the strike indicates a willingness on both sides to engage in dialogue and seek a viable resolution. As the discussions continue, finding a balanced approach that supports the sustainability of the petroleum dealers’ businesses while considering broader economic factors will be crucial. Ultimately, a well-considered decision could have a significant impact on the petroleum sector and its stakeholders in Pakistan.
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