Govt raises petroleum dealers’ margin to Rs9.98 per litre

Pakistan's petroleum dealers will receive a higher margin on fuel sales, averting a nationwide strike. The Economic Coordination Committee (ECC) of the federal cabinet approved a 15.5% increase in dealers' margins on both petrol and high-speed diesel. This decision raises the margin by Rs1.34 per liter, from Rs8.64 to Rs9.98.

The approval came after petroleum dealers threatened a nationwide strike starting August 15, accusing the government of failing to honor previous assurances. The Pakistan Petroleum Dealers Association (PPDA) called off its protest immediately after the ECC's decision. The revised margin is set to take effect on September 1.

Dealers had initially sought a variable margin linked to retail prices, which would have significantly increased their earnings. However, the ECC opted for an increase in the fixed margin instead. The margins for oil marketing companies (OMCs) remain unchanged at Rs7.87 per liter, with a potential increase tied to the implementation of digitization measures.

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Yes, the ECC approved the same increase proposed by the Petroleum Division.