After a long day of panic, petrol pumps have reopened all over the country. The government has negotiated terms with Pakistan Petroleum Dealers Association (PPDA) and agreed to increase their profit margin in petroleum sales. So, the dealers association has made amends with the government and called off the petrol strike.
Yesterday, the Pakistan Petroleum Dealers Association (PPDA) called a countrywide strike and refused to sell petrol on a low profit margin. More than 80% of petrol pumps remained closed, causing a fuel shortage all over the country.
Amid the crisis, PSO, Shell, Total Parco, HASCOL, and GO decided to keep their company owned, company operated petrol pumps open for services. Thanks to that, the people of Lahore, Rawalpindi, Karachi, Faisalabad, and a few other cities didn’t suffer that much. But the situation got somewhat serious in other places.
Last night, Adviser to the Prime Minister on Finance Shaukat Tarin and Energy Secretary Arshad Mahmood held talks with the representatives of the PPDA and agreed to increase the dealers’ profit margin in petroleum products.
Dealer’s Commission in Petrol Sales
The petrol strike was about the dealer’s low profit margin in petroleum sales. The dealer’s associations wanted the government to increase their commission up to 6%.
After the talks, the government has agreed to increase the dealer’s commission to 4.4%, making it Rs. 4.90 from Rs. 3.91.
That means when the government revises the petroleum prices on the 30th of November, the dealer’s commission on the new petrol price will be Rs. 4.90 and Rs. 4.13 on the price of high-speed diesel.
The Petroleum Division also assured the Dealers Association that after six months (during June 2022), profit margins will be readjusted according to the level of inflation prevalent at the time.
PPDA appreciated the government for hearing them out and meeting their demands midway. According to the association, it’s safe to say that, under the new arrangement, the government won’t pass the extra burden to the public. Oh, really? Let’s see.
