Petroleum Dealers Association  and Government Negotiations were very successful on margins
Channel: Mediatrack
Date: 2023-07-25

After an intensive 7-hour negotiation session at PSO House in Karachi on Monday evening, the second round of talks between the Pakistan Petroleum Dealers Association and the government regarding margins on petroleum products has reached a successful conclusion.

Sources close to the matter revealed that following mutual consent, the agreement has been officially documented.

Representatives from the Ministry of Petroleum, OGRA, and petroleum dealers are now poised to sign the agreed-upon document. In the meeting, the ministry initially proposed Rs1.64 per litre increase in the margin, which faced resistance from the petroleum dealers. However, as the session progressed, the dealers eventually accepted the proposal.

Malik Khadim Baksh, a leader of the association, confirmed the development, stating that instead of a one-time increase, the margin will be incrementally increased in four stages over 15-day intervals.

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A 41 paisa per litre rise in the margin will be implemented every 15 days, with the aim of achieving the full recommended margin within two months, he added.

The approved increase in the dealer's margin is scheduled to take effect on August 1, with the final stage expected to be completed by September 30.

Prior to this decision, petroleum dealers were pressing for a substantial 5 rupee per litre increase on their existing margin of 6 rupees per litre. However, the Minister for Petroleum Affairs linked the increase to the condition of a minimum monthly wage of Rs25,000 for pump workers, along with an 8-hour working day.