KARACHI: The Pakistan Petroleum Dealers Association (PPDA) has postponed its nationwide strike, which was due to begin tomorrow (Saturday), chairman Malik Khuda Baksh said on Friday.
The strike call was postponed after the government has increased the petroleum dealers’ margin by Rs1.34 per litre, bringing the total margin to Rs10 per litre. After receiving the Rs1.34 increase, the PPDA, which had demanded an 8 percent margin, has postponed its strike.
Addressing a emergency press conference in Karachi, PPDA Chairman Malik Khuda Bakhsh said that following the tense negotiations in Islamabad, the Petroleum Minister contacted him by telephone and informed him that the Prime Minister had approved an increase of Rs1.34 in the dealers’ margin. He added that the Prime Minister’s summary had also been forwarded to the Economic Coordination Committee (ECC).
READ MORE: Strike from tomorrow: Govt-PPDA talks stay inconclusive
He further shared that a new summary has been sent to the Prime Minister regarding changes in petroleum product prices. According to the proposal, due to a reduction in the intensity of the conflict situation in the Middle East, petroleum product prices may once again be revised every 7 or 15 days, instead of being changed daily.
He said the previous meeting with the petroleum minister had not been held in a favourable atmosphere. A special committee is also being formed to end the quota system imposed by oil marketing companies, he added.
The press conference was also attended by PPDA Vice Chairman Malik Sher Khan, Tariq Hassan, Anwar Kamal, Karachi Division President Saeed Khan, and other representatives.
Malik Khuda Bakhsh said that a joint committee has been formed to consider the dealers’ demand for an 8 percent margin, and the committee will submit its report within 30 days.
The PPDA chairman said that the association had postponed Saturday’s planned strike based on the government’s assurances. However, he warned that the association would continue its protest until all of its demands were accepted.
Vice Chairman Anwar Kamal said that the government has given all petrol pumps across Pakistan until March 23, 2027, to complete the digitisation process, with the responsibility placed on Oil Marketing Companies (OMCs).
He stated that out of approximately 14,000 petrol pumps across the country, only 10 percent have been digitized so far.
In a separate development, the petroleum ministry has sent a summary to the prime minister on changing the system for daily changes in petroleum product prices.
PPDA vice-chairman Tariq Hassan said the government has USD50 million for the dealers’ three-year inflation adjustment. He said the daily price-change system could be changed to a seven-day cycle.
Hassan said the final decision on changes in petroleum prices would come after the prime minister considers the summary, followed by decisions by the ECC and the cabinet.
He said the dealers’ petrol margin would rise to Rs10 per litre. The dealers had sought an 8 percent increase in their profit margin, while, in principle, the margin should have risen by 4 to 5 percent in line with inflation, Hassan said.
The government has set a target to make all petrol pumps digital by March 23, 2027, Hassan added.