The federal government on Friday approved a revision in petroleum dealers’ margins, following the Pakistan Petroleum Dealers Association’s decision to postpone its planned nationwide strike after receiving assurances of an increase in dealers’ profit margins on petroleum products.
At a press conference in Karachi, PPDA Chairman Malik Khuda Baksh said the petroleum minister had spoken with him by telephone for half an hour, assuring him that dealers’ profit margins would be raised. “The petroleum minister has indicated an increase of Rs1.34 in the profit margin after obtaining special approval from the prime minister,” he said.
According to a press release from the Finance Division, Finance Minister Muhammad Aurangzeb chaired a meeting of the Economic Coordination Committee at which the decision was taken. “The ECC considered a summary submitted by the Petroleum Division and deliberated on the matter regarding revision of dealers’ margins on Motor Spirit (MS) and High-Speed Diesel (HSD),” the release said. The meeting was attended by Federal Minister for National Food Security and Research Rana Tanveer Hussain, Federal Minister for Petroleum Ali Pervaiz Malik, Federal Minister for Economic Affairs Ahad Khan Cheema, along with federal secretaries and senior officials from the relevant ministries and divisions.
The development follows an earlier breakdown in talks, after which the PPDA had announced an indefinite nationwide strike beginning August 15. According to Baksh, the government had refused during negotiations to alter the system of daily adjustments in petroleum product prices, but assured dealers it would consider the Rs1.34 margin increase, subject to approval by the federal cabinet. “In view of the federal petroleum minister’s behaviour, the petroleum dealers’ delegation immediately left for Karachi and also called an emergency meeting of its executive committee,” the statement said.
