The Economic Coordination Committee (ECC) of the Cabinet on Friday approved an increase in dealers’ profit margins on Motor Spirit (MS) and High-Speed Diesel (HSD). This decision came after the Pakistan Petroleum Dealers Association (PPDA) postponed its planned nationwide strike in response to government assurances.
Finance Minister Muhammad Aurangzeb chaired the ECC meeting held at the Finance Division, where the committee reviewed a summary from the Petroleum Division regarding the revision of dealers’ margins on petroleum products. This move was crucial in preventing a potential disruption in fuel supplies.
In a significant development, PPDA Chairman Malik Khuda Baksh announced the strike postponement, citing the government’s commitment to raising dealers’ margins. Speaking at a press conference in Karachi, Baksh revealed that Petroleum Minister Ali Pervaiz Malik had personally assured him via telephone that the dealers’ margin would be increased.
Baksh further disclosed that the petroleum minister indicated an increase of Rs1.34 in the dealers’ margin, which had received special approval from Prime Minister Shehbaz Sharif. Following the minister’s intervention, the ECC convened the meeting, and a special committee is being formed to review the oil marketing companies’ request to abolish the quota system.
“The government has agreed to two of our key demands,” Baksh stated, adding that the association would continue advocating for the petroleum industry’s interests. He also noted the government’s appreciation for petroleum dealers’ consistent support to the state.
Regarding the mechanism for daily petroleum price adjustments, Baksh explained that the government’s proposed approach would be implemented in three phases over approximately two weeks. The government accepted the dealers’ demand for a minimum period to fix petroleum prices, with the association initially proposing a one-month price determination period.
However, Baksh mentioned that the government might settle on a seven-day pricing period. The ECC meeting was attended by Federal Minister for National Food Security and Research Rana Tanveer Hussain, Petroleum Minister Ali Pervaiz Malik, Economic Affairs Minister Ahad Khan Cheema, along with federal secretaries and senior officials from relevant ministries and divisions.
This approval by the ECC formally advances the government’s pledge to revise petroleum dealers’ margins, helping to avert the strike and ensure uninterrupted fuel supply across the country.
