LAHORE MIRROR — The Pakistan Petroleum Dealers Association (PPDA) has decided on Friday to postpone planned strike, during which fuel pumps across the country were set to be shut down for two days.
The postponement came after productive negotiations between the association members and State Minister for Petroleum, Musadik Malik. The minister traveled to Karachi on Friday to engage in talks with the PPDA, urging them to reconsider the nationwide strike.
In their statement, the PPDA mentioned the possibility of holding further negotiations with the government after the two-day period. Initially, the PPDA had announced the closure of all petrol pumps in Pakistan from July 22, 6 pm, in response to an inflation crisis and as a demand for an increase in profit margins.
The association, boasting over 10,000 members, expressed concerns to the petroleum minister about the adverse effects of high interest rates and inflation on their businesses. They called for an augmentation in the dealership margin to alleviate the financial strain they are facing. Additionally, the PPDA asserted that their sales had dropped by 30% due to the influx of Iranian fuel being smuggled into the country.
As of now, the planned strike has been deferred, and the association remains open to further discussions with the government in an effort to find a resolution to their concerns.
Earlier on Thursday, the PPDA announced a nationwide strike, leading to the shutdown of petrol pumps across the country from July 22. As per media reports, the reason behind the strike is the PPDA’s demand for an increase in distributors’ commission from the government.
The PPDA claimed that the current profit margins set by the government are not acceptable to them, and despite raising their concerns, they haven’t received any response from the authorities.
The PPDA has asked the government to raise their commission per liter by 5% for addressing their grievances. Currently, the government allocates a commission of 2.4 percent per liter to the petrol dealers, which they believe is inadequate and has resulted in financial losses for many pumps, forcing some of them to close down.
It was also reported that the PPDA also points out that the issue of smuggled petrol from Iran is exacerbating the situation, leading to a 30% decline in legitimate sales. However, they claim that the government has not taken sufficient action to put an end to this smuggling problem.
The PPDA has decided to keep petrol pumps closed until their demands are met. This nationwide shutdown is likely to have significant implications for the availability of fuel and could further escalate the situation if the government does not take prompt action to resolve the issues raised by the association.
