ISLAMABAD: The Economic Coordination Committee (ECC) of the federal cabinet has approved an increase in dealers’ margins on petroleum products, particularly petrol and high-speed diesel, following a detailed review of a summary presented by the Petroleum Division.
The decision was taken during an ECC meeting attended by Federal Ministers Rana Tanveer Hussain, Ali Pervaiz Malik and Ahsan Khan Cheema, along with secretaries of relevant ministries and senior government officials.
The Petroleum Division had submitted a proposal seeking a revision in the margins being paid to petroleum dealers.
After reviewing the proposal and related issues, the committee approved the increase, according to officials familiar with the development.
The decision comes amid growing concerns among petroleum dealers over rising operational costs and their demand for a higher profit margin.
The Pakistan Petroleum Dealers Association (PPDA) had earlier announced the postponement of a nationwide strike after receiving assurances from the Petroleum Minister regarding an increase in dealers’ margins.
PPDA Chairman Malik Khuda Bakhsh said the Petroleum Minister had assured the association that the dealers’ margin would be increased by Rs1.34 per litre.
The association had previously demanded an increase of around eight percent in the dealers’ margin. PPDA Vice Chairman Tariq Hassan said the proposed revision would take the dealers’ margin on petrol to approximately Rs10 per litre.
The government’s decision is expected to provide some relief to petroleum dealers, who have repeatedly highlighted increasing business and operational expenses.
The revision may also help avert further disruptions in the supply and distribution of petroleum products across the country.
Meanwhile, the government is also considering changes to the mechanism used to revise petroleum prices. According to the petroleum dealers’ association, authorities are examining a proposal to replace the existing system of frequent price adjustments with a seven-day pricing mechanism.
In this sense, the petroleum prices could be reviewed on a weekly basis instead of being subject to daily fluctuations.
However, the final decision on the proposed mechanism will be taken by the ECC and subsequently considered by the federal cabinet.
The latest decision comes at a time when the government is attempting to balance the concerns of petroleum dealers with the broader impact of fuel prices on consumers, transportation costs and inflation.
