ISLAMABAD: Pakistan’s information minister Chaudhry Fawad Hussain announced on Thursday the country’s petrol retailers had agreed to call off a strike after reaching an agreement with the government over an increased profit margin.
Earlier in the day, the country’s petroleum division had urged these retailers to end their indefinite strike which was causing public inconvenience while pointing out it had already forwarded a summary regarding the increase in their margin to the Economic Coordination Committee (ECC).
The Pakistan Petroleum Dealers Association went on a strike after failing to secure a deal with the government to increase their margin to at least six percent per liter.
The strike call was followed by long traffic queues at petrol stations across the country.
“The Petroleum Dealers Association has ended its strike,” Hussain announced in a Twitter post while calling it “good news.”
Quoting the association’s spokesperson Jahanzaib Malik, a local newspaper, Dawn, said petroleum dealers had agreed to a 4.4 percent increase in their profit.
“Malik said that petrol dealers were charging Rs3.91 per liter and would now charge Rs4.90,” the newspaper reported. “He said that the price of petrol would be increased after the government announced the rates for next month.”
Prior to reaching the agreement, Pakistani officials asked these dealers to call off their strike and follow the procedure to secure an increase in the profit margin.
“The association of petrol dealers should wait for the ECC meeting as per the rules,” the petroleum division at the energy ministry told them. “The association should exhibit responsibility in the larger interest of the country.”
However, the petroleum dealers said in a statement on Wednesday they were unable to run their business at the current margin in the face of rising inflation in the country.
They also maintained the government promised to increase their profit earlier this month but reneged on its commitment.
“We feel for the public,” the statement said, “but we are left with no option. We cannot run petrol pumps anymore at a loss.”
Following the strike call, the government announced that all companies operating petrol pumps would remain functional and cater to the public demand.
However, nearly all privately owned petrol stations in the country halted their operations.
The Oil and Gas Regulatory Authority (OGRA) spokesperson, Imran Ghaznavi, said officials were in touch with the oil marketing companies to ensure uninterrupted supply of petroleum products.
“OGRA teams are in touch with stakeholders and engaged in smooth supplies,” he said.
Pakistan’s finance chief Shaukat Tarin announced recently the government would increase petroleum levy by Rs4 per liter to help meet its revenue target under an agreement with the International Monetary Fund.
He said the government would add this amount to petrol prices every month as part of the levy until it touches 30 rupees per liter.
Pakistani petroleum dealers end strike after proposed increase in profit margins
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Pakistani petroleum dealers end strike after proposed increase in profit margins
- Petroleum dealers went on a strike after failing to secure a deal with the government to increase their margin to at least 6 percent per liter
- Strike call was followed by long traffic queues at petrol stations across the country
Pakistan announces oil, gas discovery in northwest as it seeks to cut energy imports
- Exploratory well in Khyber Pakhtunkhwa flows 4,100 barrels of oil, 10.5 MMSCFD of gas
- The find adds to recent discoveries as Pakistan pushes to boost domestic energy output
KARACHI: Pakistan on Thursday announced the discovery of oil and gas in the northwestern Khyber Pakhtunkhwa province, saying the find could help reduce the country’s energy supply gap by adding to domestic production.
The discovery was made in the Datta Formation at an exploratory well drilled by the state-run Oil and Gas Development Company Limited (OGDCL) in Kohat district. The Datta Formation is a rock layer known to hold oil and gas in parts of northern Pakistan and has been a key focus of exploration activity.
Pakistan faces a widening energy gap due to rising demand and limited domestic output, forcing it to rely heavily on costly fuel imports that leave the economy exposed to global price swings.
“During case-hole Drill Stem Test (DST-02) in Datta Formation (Jurassic age), the well flowed at the rate of 4,100 barrels of oil per day (BOPD) and 10.5 million standard cubic feet per day (MMSCFD) of gas,” OGDCL Company Secretary Wasim Ahmad said in a letter to the Pakistan Stock Exchange.
A drill stem test is carried out to assess how much oil and gas a well can produce after drilling, helping companies evaluate whether a discovery is commercially viable.
OGDCL said the well was drilled to a depth of 5,170 meters and encountered oil- and gas-bearing zones at multiple levels. Earlier testing in a deeper geological layer had also resulted in a discovery, strengthening the overall prospects of the well.
“This oil and gas discovery will contribute toward mitigating the energy supply-demand gap through indigenous resources and will add to the hydrocarbon reserves base of OGDCL, its joint partners and the country,” the letter added.
Pakistan has reported several oil and gas finds in recent months as it steps up efforts to boost domestic output.
In September, Pakistan Petroleum Limited announced a discovery in Attock district of Punjab, while Mari Energies reported a new gas find in North Waziristan earlier this year.
