Tag: PPDA

  • Pakistan’s petroleum dealers temporarily postpone nationwide petrol pump shutdown

    Pakistan’s petroleum dealers temporarily postpone nationwide petrol pump shutdown

    Pakistan Petroleum Dealers Association (PPDA) has postponed its planned nationwide strike to shut down fuel pumps for two days following successful negotiations with State Minister for Petroleum, Musadik Malik, who arrived in Karachi today (Friday) to address their concerns.

    In their statement, PPDA conveyed the possibility of holding further discussions with the government after the two-day period. Initially, the association had announced the shutdown of all petrol pumps across Pakistan on July 22 at 6 pm, demanding an increase in profit margins amid the ongoing inflation crisis.

    The PPDA’s concerns primarily revolve around the impact of high interest rates and inflation on their businesses, leading them to call for an increase in the dealership margin. They also raised the issue of declining sales due to the smuggling of Iranian fuel into the country.

    Abdul Sami Khan, chairman of the association, informed Reuters that approximately 8,000-9,000 operators, represented by the PPDA, were prepared to shut down operations on July 22.

    The supply of petrol will remain suspended until the demands put forth by the PPDA are met by the government. This decision comes at a time when Pakistan is grappling with a weakening currency and soaring inflation, with the national rate reaching 29.4% in June, down from the record high of 38% in May.

    In May of the previous year, Pakistan’s oil industry had requested a Rs12/litre margin on high-speed diesel (HSD) and Mogas (petrol) for oil marketing companies (OMCs) due to the high cost of conducting business, leading to financial hardships.

    The PPDA highlighted various challenges faced by the oil industry, including increased fuel prices in the international market, exchange rate fluctuations, higher interest rates resulting in inventory holding costs, credit letter confirmation charges leading to higher demurrages, and a high turnover tax of 0.5 per cent.

    Although the Economic Coordination Committee (ECC) had revised the margin for HSD and Mogas to Rs6/litre during the current year based on a decision taken on October 31, 2022, the PPDA insists that this revision is insufficient and requires urgent review.

  • Petrol strike called off after successful talks

    Petrol strike called off after successful talks

    The Pakistan Petroleum Dealers Association (PPDA) has called off a countrywide petrol strike after successful talks between the Ministry of Energy and the association.

    The government has agreed to increase the margin by Rs0.99 paisa and assured the petroleum dealers that the profits will be reviewed every six months.

    In a tweet, the Minister of Energy Hammad Azhar announced, “The talks between the Govt and petroleum dealers association has led to the strike being called off. The government will notify 0.99 paisa increase in their margins after due approval from the cabinet as per the existing summary. After 6 months we will move to percentage system up to 4.4 per cent margin.”

    Petroleum Division officials said that a summary seeking a raise of Rs0.99 or 25 per cent increase in the margin has been sent, reports Geo News.

    According to the notification by PPDA, the margin for the petrol dealers after the suggested increase will rise to Rs4.90, while for the high-speed diesel, the margin will rise to Rs4.13 after the proposed hike of Rs0.83.

    On Wednesday, the association went on a strike which caused the closing of several petrol pumps across the country.

  • All petrol pumps will be closed, petroleum dealers announce strike on Nov 25

    The Pakistan Petroleum Dealers Association (PPDA) has announced a countrywide strike on November 25 for selling petrol “on low-profit margins”, reports The News.

    The association’s spokesperson said that all petrol pumps across the country, including Kashmir and Gilgit Baltistan, will remain closed on November 25 (Thursday).

    He said the strike could extend to an “unspecified period” if the government continues to ignore the association’s demands.

    According to him, “We have no other option but to go on strike as the government has failed to meet the November 17 deadline for the fulfilment of our demands.”

    Previously, the association had made a similar announcement for November 5 but withdrew after a team from the government agreed to increase margins on the sale of petroleum products by six per cent.

    However, there has been no progress ever since.

    PPDA Chairman Abdul Sami Khan said petroleum dealers have been in a difficult position due to the high cost of business and low margins. He said that the government guarantees a margin of only 2 per cent on sales of fuel oil in the face of rising electricity tariffs.

    “We demand the government to cancel our petrol pumps licences. Nearly 50 per cent of the petrol pumps will close down permanently with licence cancellation as no one will reapply for acquisition”.

    Earlier this month, the government had announced the rise of up to Rs 8.14 per litre of petroleum products.