As per the latest news, the government and petrol pump owners have reached an agreement that led to the cancellation of a planned strike. The dealers had threatened to shut down operations to protest the existing profit margins, demanding a 5% increase to ease their financial burden. After a marathon seven-hour meeting, a compromise was struck, and both parties found common ground.
The government has agreed to raise the dealers’ profit margins by Rs. 1.64 per liter for both petrol and diesel. To alleviate the impact on consumers, this increase will be implemented in four equal parts of Rs. 0.41 per liter over the course of two months, starting from August 1, 2023, and concluding in mid-September 2023. This phased approach will prevent an abrupt spike in petrol and diesel prices, which could further burden an already inflation-hit populace.
Prominent member of Pakistan Petroleum Dealers Association (PPDA) , Malik Khuda Baksh, revealed that the initial increase will take effect on September 1, 2023, in four equal installments. While the dealers were hoping for a 5% raise, the government’s offer fell short of that mark, leading to initial reluctance on their part. However, they eventually agreed to avoid a strike and further disruptions.
The agreement reached during the meeting was signed by the Oil and Gas Regulatory Authority (OGRA) chairman, the director general of oil, and the PPDA chairman. Despite the compromise, the dealers expressed concerns about their profitability, citing the surging inflation and low sales as major challenges.
The postponement of the strike was initially secured after State Minister for Petroleum Musadik Malik held a meeting with the dealers and promised a revision of their margins. The government offered an increase of Rs. 1.64 per liter, an offer that remained unchanged throughout the meeting, despite the dealers’ protests.
While the petrol pump owners find relief in the agreement, the LPG dealers are gearing up for a strike on August 5 and 6. However, the Pakistan LPG Marketers Association (PLPGMA) distanced itself from the strike, denouncing it as a move that would exacerbate consumer hardships. The PLPGMA emphasized that it would keep its outlets open and accused the strike-callers of stockpiling LPG to sell at inflated prices.
