The government has approved a 15.5% increase in the margin for petroleum dealers, raising the margin on petrol and high-speed diesel from Rs8.64 to Rs9.98 per litre.
The revised margin is scheduled to take effect from September 1, providing higher earnings to fuel station operators following their demands for an adjustment in the existing margin structure.
The decision came after petroleum dealers announced plans for a nationwide strike to press for an increase in their margins.
Following the government’s approval, the Pakistan Petroleum Dealers Association called off the planned strike, bringing an end to the immediate threat of disruption at petrol stations across the country. The dealers had been seeking a margin mechanism that would vary in line with retail fuel prices.
However, the government has decided to retain the existing fixed-margin system instead of introducing a variable margin linked directly to fuel prices.
Under the revised arrangement, dealers will receive Rs9.98 per litre on petrol and high-speed diesel, while the margins for oil marketing companies will remain unchanged at Rs7.87 per litre.
The increase is expected to provide some financial relief to petroleum dealers by improving the amount they earn on each litre of fuel sold. At the same time, the decision avoids an immediate nationwide strike that could have affected fuel availability and disrupted transportation and daily activities.
The revised margin structure will come into effect from September 1, subject to the applicable government notification and implementation process.
