Petroleum dealers warn of strike from 27th

Claim their margin dropped to 2.68% due to rising oil prices

KARACHI:

The Pakistan Petroleum Dealers Association (PPDA) has warned that petrol pumps across the country will shut down indefinitely from March 27 if the government fails to increase the dealers' margin to 8 per cent.

The association made the announcement on Friday during an emergency press conference at the Karachi Press Club. PPDA Chairman Abdul Sami Khan said petroleum dealers would resist if their demands were not met.

"We were promised an eight per cent margin by the government, but due to rising petroleum product prices, our margin has now dropped to 2.68 per cent, making it impossible for us to continue business," he said.

He urged the government to fulfill its commitment, warning that dealers would shut down petrol pumps nationwide if the demand was not accepted.

PPDA Vice Chairman Tariq Hassan also expressed concern over the possibility of another fuel price increase this week, claiming petrol prices could rise by Rs50 to Rs60 per litre.

Another official, Waseem Qadri, said that if the margin was fixed at eight per cent, dealers' earnings would increase from around Rs8 per litre to approximately Rs25 per litre.

Petroleum dealers also alleged that Iranian diesel and petrol were still being sold widely in the country, affecting the local fuel market.

Last week, on March 4, the All-Pakistan Petrol Pump Owners Association warned of a possible shortage of petroleum products in the country and sought immediate government intervention.

In the letter to the prime minister, the association alleged that oil marketing companies had imposed a quota system and were not supplying petrol pumps with the required quantity of fuel.

It said that despite placing orders, supplies were delayed, and tankers were made to wait for hours. The association cautioned that creating an artificial shortage could lead to panic among the public.