Govt agrees on ‘reasonable’ upward hike in petroleum dealers’ margins

The Ministry of Petroleum has agreed to the demand of the Pakistan Petroleum Dealers Association (PPDA) to increase their profit margin on petroleum products, reported the 24NewsHD TV channel.

According to sources, the decision was taken during the meeting between the representatives of the PPDA and the government.

The government has agreed to increase the petroleum retailers’ margin by Rs1.64 per liter.

The agreement will be signed by the Ministry of Petroleum, OGRA, and PPDA.

After seven hours of negotiations, the matter was finally settled.

The Ministry of Petroleum has suggested increasing the margin by Rs.1.64 and after several hours of denial by the dealers, finally agreed.

Earlier, PPDA had threatened a countrywide shutdown of fuel stations in protest against the low-profit margins. The association had demanded an increase in its profit margin by 6 percent.

The PPDA demanded an Rs5 increase in dealers’ margin, whereas the government is willing to increase a slight margin of petroleum products.

Now, it has been decided that Rs 1.64 margin increase will be available in four phases every fortnight instead of one time.

According to the plan, Rs 0.41 will be made every 15 days of margin increase.

 A four times increase will be made for dealers' margin.

The complete margin will be available to the dealers in two months.