The government has rejected petroleum dealers’ demand to shift from the existing daily fuel price-fixing mechanism to a monthly pricing system, with Petroleum Minister Ali Pervaiz Malik maintaining that the current arrangement will continue.
The development comes as the Pakistan Petroleum Dealers Association (PPDA) issued a 72-hour strike ultimatum over unresolved demands, including an increase in dealers’ profit margins.
A delegation of petroleum dealers, led by PPDA Chairman Malik Khuda Bakhsh, met Petroleum Minister Ali Pervaiz Malik in Islamabad on Wednesday to discuss their concerns. The minister attended the meeting for around 20 minutes before leaving after being summoned by the prime minister.
A subsequent meeting involving senior officials from relevant ministries and government departments continued for around five hours, but failed to produce a final agreement.
Dealers Seek Higher Margins
According to Malik Khuda Bakhsh, the delegation reminded the minister of the government’s earlier commitment to address their demands within 15 days. The minister, however, said he could not approve the demands himself as the prime minister holds the authority to make the decision.
The petroleum minister informed the dealers that a proposed Rs1.34 per litre increase in dealers’ margins, pending for nearly two years, had already been forwarded to the Economic Coordination Committee (ECC) and was awaiting approval from the federal cabinet.
Petroleum dealers, however, are seeking an 8% increase in their margins. Dealers currently receive a margin of Rs8.64 per litre, which Khuda Bakhsh claimed falls to around Rs2.20 per litre after accounting for various operating expenses.
PPDA to Decide on Planned Strike
Following the inconclusive negotiations, the PPDA is set to convene a 30-member Executive Committee meeting in Karachi on Friday to review the government’s response and decide on its next course of action.
The association is expected to announce its final decision regarding the planned petrol pump shutdown from August 15 after the meeting.
The government’s refusal to adopt monthly fuel price reviews remains a key point of disagreement between the authorities and petroleum dealers as both sides continue negotiations over pricing and dealer margins.
