ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Friday approved Rs1.34 per litre increase in the margin of petroleum dealers, taking their margin to around Rs10 per litre on Motor Spirit (MS) and High-Speed Diesel (HSD), paving the way for the Pakistan Petroleum Dealers’ Association (PPDA) to call off its planned strike.
Federal Minister for Finance and Revenue Senator Muhammad Aurangzeb chaired the ECC meeting held at the Finance Division, which considered a summary submitted by the Petroleum Division seeking revision of dealers’ margins on petroleum products.
According to the Petroleum Division’s summary, the existing dealers’ margin of Rs8.66 per litre on MS and HSD is proposed to be increased by Rs1.34 per litre, based on the annual National CPI for 2023-24 and 2024-25, subject to a floor of five percent and ceiling of 10 percent.
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The government’s decision comes after the PPDA announced plans to go on strike from Saturday over the issue of dealers’ margins and their linkage with digitalisation requirements.
Following the ECC decision, the PPDA called off its planned strike, saying the government had accepted its demand for an increase in the dealers’ margin by Rs1.34 per litre, bringing the total margin to approximately Rs10 per litre.
The Petroleum Division’s summary noted that the ECC had earlier approved an increase in margins, with implementation linked to the achievement of digitalisation targets by oil marketing companies (OMCs) and dealers. Subsequently, the Cabinet, through its decision of December 23, 2025, ratified the ECC decision and stipulated that the increase would be implemented subject to digitalisation.
The issue resurfaced after the petroleum dealers’ associations raised objections to linking their margins with digitalisation requirements. A meeting was held on July 22, 2026 between representatives of the All-Pakistan Petrol Pump Owners Association and Pakistan Petroleum Dealers Association and officials of the Ministry of Petroleum and Ogra.
During the meeting, the dealers maintained that their margins should not be linked to implementation of digitalisation. They also sought revision of their existing fixed margin of Rs8.66 per litre on MS and HSD as a percentage of consumer prices.
The Petroleum Division subsequently resubmitted the matter to the ECC for reconsideration.
The summary also proposed a revision in the OMC margin by Rs1.22 per litre based on the annual National CPI for 2023-24 and 2024-25, with a five percent floor and 10 percent ceiling, subject to achievement of digitalisation targets set by OGRA.
The Petroleum Division stated that the proposals had been circulated to the OMCs and Finance Division for comments before being placed before the ECC.
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, federal secretaries and senior officials of relevant ministries and divisions.
Copyright Business Recorder, 2026
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