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.