Web Desk: Pakistan’s petrol dealers have postponed a nationwide strike that had been scheduled for the following day after the government assured them that their profit margin would be increased, industry representatives said.
The announcement came in Karachi, where Pakistan Petroleum Dealers Association Chairman Malik Khuda Bakhsh said talks with the petroleum minister had produced progress on the dealers’ long-standing demand for higher margins.
The planned strike had raised concerns about disruptions at fuel stations across the country. However, dealers decided to delay the action after receiving assurances from the government.
Khuda Bakhsh said a previous meeting with the petroleum minister had initially been tense. However, the minister later spoke with him by phone for about 30 minutes and assured him that the dealers’ margin would be increased.
According to Khuda Bakhsh, the petroleum minister had obtained special approval from Prime Minister Shehbaz Sharif to increase the dealers’ margin by Rs1.34 per litre.
He added that the minister had also intervened to convene a meeting of the Economic Coordination Committee on the issue.
The proposed increase is expected to provide some relief to dealers, who have argued that their earnings have failed to keep pace with rising operating costs and inflation.
Pakistan Petroleum Dealers Association Vice Chairman Tariq Hassan said dealers had originally demanded an 8% increase in their profit margin.
He said that, based on inflation, the margin should have risen by about 4% to 5% as a matter of principle.
Under the proposed adjustment, the dealers’ margin on petrol would reach Rs10 per litre, Hassan said.
However, the final decision will depend on the government’s approval process.
Hassan said the petroleum ministry had sent a summary to the prime minister proposing changes to the system used to revise petroleum product prices.
The government is considering replacing the current daily price-adjustment mechanism with a system that could allow prices to be revised every seven days.
The proposal will require consideration by the Economic Coordination Committee and the federal cabinet before any final decision is taken.
Hassan also said the government had about $50 million available under a three-year inflation adjustment arrangement for petroleum dealers.
Meanwhile, Khuda Bakhsh said a special committee would be formed to address the dealers’ demand for an end to the quota system imposed by oil marketing companies.
Dealers have argued that changes to the supply and distribution system are needed alongside adjustments to their profit margins.
The industry is also facing a push toward greater digitalisation.
Hassan said the government had set a target to digitally convert all petrol stations across the country by March 23, 2027.
The move is expected to bring greater digital integration to the petroleum retail sector while potentially improving monitoring and transaction systems.
For now, however, the immediate focus remains on the proposed margin increase and the government’s review of petroleum pricing.
With the planned strike postponed, dealers are expected to await the outcome of the ECC meeting and subsequent cabinet decision before determining their next course of action.
Read more: When will petrol pumps shut across Pakistan? Dealers confirm strike date after failed negotiations
