The Economic Coordination Committee (ECC) of the Cabinet on Friday approved a summary of Petroleum Division regarding revision in dealers’ margins on Motor Spirit (MS) and High-Speed Diesel (HSD), after the Pakistan Petroleum Dealers Association (PPDA) postponed its planned nationwide strike following assurances from the government.
Finance Minister Muhammad Aurangzeb chaired the ECC meeting at the Finance Division. The ECC was attended by Federal Minister for National Food Security and Research Rana Tanveer Hussain, Petroleum Minister Ali Pervaiz Malik, Economic Affairs Minister Ahad Khan Cheema, federal secretaries and senior officials from relevant ministries and divisions.
The ECC’s approval formally advances the government’s commitment to revise petroleum dealers’ margins, potentially averting a disruption in fuel supplies that could have resulted from the planned strike.
According to sources, ECC has approved 15.51% increase in dealer margins for petrol and diesel. This will result in an additional burden of Rs 2.68 per liter on the prices of petrol and diesel. The dealer margin on petrol will increase by Rs 1.34 per liter.
Dealer margins on diesel will also increase by Rs 1.34 per liter. Dealer margins for petrol and diesel will rise to Rs 19.96 per liter. The dealer margin will stand at Rs 9.98 per liter each for petrol and diesel, according to sources. Currently, the dealer margin is Rs 8.64 per liter each for petrol and diesel.
Sources said after the approval of the summary, PPDA Chairman Malik Khuda Baksh announced the postponement of the association’s planned strike.
Speaking at a press conference in Karachi, Baksh said Petroleum Minister Ali Pervaiz Malik had talked to him today and assured that the dealers’ margin would be increased.
According to Baksh, the petroleum minister had indicated an increase of Rs1.34 in the dealers’ margin after obtaining special approval from Prime Minister Shehbaz Sharif.
Baksh said the ECC meeting was convened following the petroleum minister’s intervention, while a special committee was also being formed to consider oil marketing companies’ demand for abolition of the quota system.
Reporter Waqas Azeem