ISLAMABAD: Pakistan’s fuel pump operators announced Monday they took back their threat to go on a nationwide strike after the government raised their profit margin by Rs1.6 per liter following the negotiations that lasted several hours.

The Pakistan Petroleum Dealers Association (PPDA) had announced last week to shut down fuel stations across the country on July 22 in a bid to secure higher margins amid soaring inflation and the rising cost of living.

The association representatives also complained about the influx of smuggled fuel from neighboring Iran, saying illegal flow of oil had led to a 30 percent decline in their sales of diesel.

“We will get it in four installments,” the association chairman, Sami Khan, told a group of journalists while answering a question about the increased profit margin. “We are not satisfied. But we have made the agreement to avoid the strike.”

The petroleum dealers will receive an overall margin of Rs7.6 per liter after the increase since they were already earning Rs6 per liter before.

PPDA officials had demanded a rise of Rs5 per liter and initially told the government that the proposed increase was not sufficient.

However, they later settled down for the suggested increase and signed the agreement made with senior government functionaries.