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Energy ministry proposes to raise dealers’ profit margins by 99 paisas

Energy ministry proposes to raise dealers’ profit margins by 99 paisas

ISLAMABAD: In the wake of protests from petroleum dealers, the ministry of energy and petroleum has sent the approval for a rise in the margins of oil marketing companies (OMCs) to the Economic Coordination Committee (ECC), the spokesperson said on Thursday.

“The dealers  margin has been increasing by Rs0.20 in the past,” he said, adding that this time a request for an increase of Rs0.99 has been made which will “offset all past losses incurred by the dealers.”

Earlier today, the Pakistan Petroleum Dealers Association (PPDA) had announced to go on a countrywide strike from November 25 till an indefinite period to register their protest at “low-profit margins”.

Moreover, the association had said they will not hold talks with authorities till their profit margins on the sale of petroleum products are not increased by 6%.

However, the Ministry of Energy and Petroleum Division immediately announced that all petrol pumps will remain in service across the county.

The spokesperson emphaiszed that the ministry is not in the favor of imposing an additional burden on people.

“Major oil marketing companies (OMCs) of Pakistan, whose petrol pumps are open, are trying to convince other pump owners to keep their pumps open.”

The official maintained that many dealers are ready to open their pumps but they are being stopped.

Furthermore, he added that in future as well, margins will be determined after every six months keeping in view the inflation figures in the country.

Adding that the oil stock is abundant in the country at present, the spokesperson said that the Oil and Gas Regulatory Authority (OGRA) has finalized a plan to alleviate havoc among the public.

According to the Ministry of Energy, most of the petrol pumps of state-owned Pakistan State Oil (PSO) provided the service today.

“Orders have been issued for opening of remaining petrol pumps of PSO,” the spokesperson said.

Meanwhile, Federal Minister for Energy Hammad Azhar and Gas & Oil Pakistan (GO) CEO Khalid Riaz held a meeting to discuss the situation.