To reach an agreement on increasing profit margins the Petroleum dealers will meet Minister of State for Petroleum Musadik Malik today, as per media reports.
Petroleum dealers have been protesting and threatening to shut down stations countrywide if their demands are not approved.
However, after a meeting between Pakistan Petroleum Dealers Association (PPDA) officials and Minister on Friday, the strike was postponed to the conclusion to increase the dealers’ profit margin.
“No petrol stations would be closed till the meeting and any further plan of action will be decided after the meeting’s outcome,” the PPDA official said.
The current profit margin of dealers stands at 2.4% or Rs6 per liter and they have demanded a revision to 5%, an almost double increment.
As per the PPDA Chairman Abdul Sami Khan, the consumer price index had increased to 38pc while electricity and other utility rates had spiked due to the Kibor rate.
The hike in the Kibor rate has resulted in the consumer price index (CPI) increasing to 38%, along with hikes in electricity and other utility rates, PPDA Chairman Abdul Sami Khan said.
The PPDA Chairman noted that in 1999, it was decided that dealers would get a 5% margin on oil products, however, the government fixed Rs6 per liter on oil products, which translates to only 2.4%, a figure that has left the dealers dissatisfied.