Petrol Pumps Strike: The Ministry of Energy sends proposal for increasing dealers’ profit margins by 99 paisas

Following the Petrol Pumps Strike, the ministry of energy and petroleum has sent the approval for an increase in the margins of oil marketing companies (OMCs) to the Economic Coordination Committee (ECC), the spokesperson said on Thursday.

“The dealers’ margin has been increasing by Rs0.20 in the past,” the spokesperson said. 

“This time a request for an increase of Rs0.99 has been made which will offset all past losses incurred by the dealers,” he added.

On the issue of increasing margins on petroleum products, the Petroleum Division has proposed to increase the margins of oil marketing companies on petrol and high speed diesel by 71 paisa per liter and dealers on petrol by 99 paisa per liter.

According to sources, the OMC margin on petrol was proposed to be increased from Rs 2.97  to Rs 3.68 and OMC margin on high speed diesel from Rs 2.97 to Rs 3.68 .

The Petroleum Division has proposed to increase dealer margin on petrol by 99 paisa per liter and dealer margin on high speed diesel by 83 paisa per liter while dealer margin on petrol has been increased from Rs3.91 to Rs4.90 and higher.

 The dealer’s margin on Speed Diesel from Rs. 3 30 to Rs. 4 13 per liter has been proposed.

The summary has been sent to ECC.

The development comes as the Pakistan Petroleum Dealers Association (PPDA) is  implementing a countrywide strike from today (November 25) till an indefinite period to register their protest about the “low-profit margins”.

On the other hand, according to the Ministry of Energy, most of the state-owned Pakistan State Oil (PSO) petrol pumps remained open today.

Federal Minister for Energy Hammad Azhar and Gas & Oil Pakistan (GO) CEO Khalid Riaz held a meeting today.

Following which Riaz said that orders have been issued to reopen the rest of the petrol pumps across the country.