Petroleum dealers and Minister set to meet today to resolve profit margin dispute

According to media reports, the Petroleum dealers are scheduled to hold a meeting today with Minister of State for Petroleum, Musadik Malik, in an effort to reach an agreement on increasing profit margins.

In response to their demands, the Petroleum dealers have been engaged in protests and have issued threats of a countrywide shutdown of stations if their requests are not met.

However, following a meeting between officials of the Pakistan Petroleum Dealers Association (PPDA) and the Minister on Friday, the strike has been temporarily postponed, pending a resolution regarding the increment of the dealers’ profit margin.

A spokesperson from the PPDA clarified that no petrol stations will be closed until after the meeting, and any further course of action will be determined based on the outcome of the meeting.

Currently, the profit margin for dealers stands at 2.4 per cent or Rs6 per liter, and they are seeking a revision to 5 per cent, which amounts to nearly double the current margin.

According to Mettis Global, the PPDA Chairman, Abdul Sami Khan, pointed out that the consumer price index has escalated by 38 per cent, while electricity and other utility rates have also spiked, primarily due to the increase in the Kibor rate.

He further highlighted that a decision was made in 1999, stating that dealers would receive a 5 per cent margin on oil products. However, the government fixed the margin at Rs6 per liter, resulting in a mere 2.4 per cent profit for dealers, which has left them dissatisfied.