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 seeks Saudi oil route via Red Sea port as Hormuz closure threatens supplies
- Islamabad requests alternative crude shipments through Saudi Arabia’s Yanbu port on the Red Sea
- Most of Pakistan’s energy imports transit the Strait of Hormuz, now disrupted by regional conflict
ISLAMABAD: Pakistan has asked Saudi Arabia to help secure crude oil supplies through the Red Sea port of Yanbu as the closure of the Strait of Hormuz threatens the country’s energy supply routes, the petroleum ministry said on Wednesday.
The request comes as the strategic waterway between Iran and Oman was shut after escalating hostilities between Iran and the United States and Israel in the Gulf, disrupting tanker traffic through one of the world’s most important oil chokepoints.
About one-fifth of global oil shipments normally pass through the Strait of Hormuz, including exports from Saudi Arabia, Iraq, Kuwait, the United Arab Emirates and Qatar. Pakistan relies heavily on Middle Eastern crude, with the majority of its energy imports typically transiting the strait, making any disruption a major risk to domestic fuel supplies.
During a meeting in Islamabad with Saudi Ambassador Nawaf bin Said Al-Malki, Petroleum Minister Ali Pervaiz Malik discussed contingency plans to maintain Pakistan’s energy supply chain. According to a statement from Malik’s office, Saudi Arabia indicated it could facilitate shipments through the Red Sea port of Yanbu, offering an alternative route if Gulf shipping lanes remain disrupted.
“Saudi Arabian sources had assured security of supplies through the Port of Yanbu on the Red Sea, which can help meet energy requirements,” the statement said.
“Pakistan is closely monitoring the evolving situation on a daily basis, as the majority of Pakistan’s energy supplies transit through the Strait of Hormuz.”
The Saudi ambassador reaffirmed Riyadh’s support, saying the Kingdom was aware of the evolving situation and would stand with Pakistan to meet any emergency requirements, the statement added.
Saudi Arabia and Pakistan share long-standing economic and strategic ties, with Riyadh serving as one of Islamabad’s key energy suppliers.
