Petrol dealers’ pressure works as ECC approves margin increase

News Desk

Islamabad: A planned strike by petroleum dealers has been averted after the government approved an increase of Rs1.34 per litre in their margin on motor spirit and high-speed diesel.

The Economic Coordination Committee (ECC), which met in Islamabad on Friday under Finance Minister Muhammad Aurangzeb, approved the Petroleum Division’s proposal to revise the dealers’ margin on petroleum products.

With the latest increase, the dealers’ margin has risen to Rs10 per litre. The decision comes after petroleum dealers had threatened to shut petrol pumps over their demand for a higher profit margin.

The Pakistan Petroleum Dealers Association had been seeking an 8 per cent increase in the margin. Following the government’s decision, the association postponed the strike that had been scheduled for Saturday.

Association officials said a joint committee has also been formed to examine the dealers’ demand for an 8 per cent margin and submit its recommendations within 30 days.

Vice Chairman of the All Pakistan Petrol Pump Owners Association Noman Ali Butt confirmed the increase and thanked Prime Minister Shehbaz Sharif and Petroleum Minister Ali Pervaiz Malik for addressing the dealers’ concerns.

Earlier, Pakistan Petroleum Dealers Association Chairman Malik Khuda Bakhsh said the strike was being postponed after assurances from the petroleum minister. He said the minister had assured dealers of a Rs1.34 per litre increase after seeking special approval from the prime minister.

The dealers had initially demanded an 8 per cent increase, arguing that rising inflation had eroded their earnings. Association Vice Chairman Tariq Hassan said the margin should ideally have been increased by 4 to 5 per cent in view of inflation.

The government is also working on several other measures affecting the petroleum retail sector. According to Hassan, a committee is being formed to examine the quota system imposed by oil marketing companies, while the government has set a target of digitising all petrol pumps by March 23, 2027.

The issue of petroleum pricing is also under review, with the Petroleum Ministry having forwarded a summary concerning the system of daily changes in fuel prices. Any change to the pricing mechanism will require approval from the ECC and the federal cabinet.

The immediate dispute, however, has been settled for now, with petrol dealers calling off their proposed strike following the approved margin increase.