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Strike called off as petroleum dealers’ margin raised by Rs1.6 per litre

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1 year ago

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  • Dealers initially termed Rs1.64 per litre increment “insufficient”.
  • Raise in margins to be applied in four phases.
  • Dealers’ margin to rise to Rs 7.64 per litre after two months.

KARACHI: In a bid to convince petroleum dealers to call off the strike they threatened last week, the government agreed to increase their profit margin on petroleum products by Rs1.64 per litre, after hours-long negotiations, The News reported Tuesday.

Pakistan Petroleum Dealers Association (PPDA) Chairman Abdul Sami Khan announced the deal made in this regard.

The government had proposed increasing the dealers’ margin by Rs1.64 per litre. 

The dealers — who had initially sought an increase of Rs5 per litre — initially opposed this increment as “insufficient” in the face of the increased cost of their business. 

However, they later accepted the offer. 

The rise in dealers’ margins will be applied to the consumer price in four phases. 

It will be raised by Rs.0.41 per litre every fortnight, and the dealers will receive a full raise of Rs1.6 per litre in two months, bringing the dealers’ margin to Rs7.6 per litre after 2 months from the current Rs6 per litre.

Last week, the petrol pump owners’ representative, PPDA, announced shutting down fuel pumps across the country from July 22, demanding an increase in profit margins amid an inflation crisis.

In a statement, the association said the State Minister for Petroleum, Musadik Malik, was informed about their concerns but to no avail.

The official communique said interest rates and inflation had hit operators’ businesses and called for the dealership margin to be increased.

It said sales have slumped by 30% due to Iranian fuel being smuggled into the country.

However, the following day, the PPDA deferred its strike for two days after the association members negotiated with the petroleum minister, who arrived in Karachi on Friday to convince the PPDA to call off the nationwide strike.

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Irfan Siddiqui meets with the PM and informs him about the Senate performance of the parliamentary party.

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The head of the Senate’s Foreign Affairs Standing Committee and the PML-N’s parliamentary leader paid Prime Minister Muhammad Shehbaz Sharif a visit in Islamabad.

Senator Irfan Siddiqui gave the Prime Minister an update on the Parliamentary Party’s Senate performance.

Additionally, Senator Irfan Siddiqui gave the Prime Minister an update on the Senate Standing Committee on Foreign Affairs’ performance.

He complimented the Prime Minister on his outstanding efforts to bring Pakistan’s economy back on track and meet its economic objectives.

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SIFC Increases Direct Foreign Investment: Investment in the Energy Sector Rises by 120%

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The Special Investment Facilitation Council is intended to help Pakistan’s energy sector attract $585.6 million in direct foreign investment in 2024–2025. The amount invested at the same time previous year was $266.3 million.

This is a notable 120% rise, mostly due to investments in gas exploration, oil, and power. Such expansion indicates heightened investor confidence and emphasizes the development potential in important areas.

The State Bank reports that foreign investment in other vital industries has increased by 48% to $771 million.

This advancement is a blatant testament to SIFC’s efficient investment procedure and quick project execution.

The purpose of the Special Investment Facilitation Council is to establish Pakistan as an investment hub by aggressively promoting regional trade and investment in the energy sector and other critical industries.

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Discos report losses of Rs239 billion.

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2 days ago

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When compared to the same period last year, the data indicates that discos have decreased their losses in the first quarter of the current fiscal year.

The distribution businesses recorded losses of Rs239 billion in the first three months of the current fiscal year, a substantial decrease from the Rs308 billion losses sustained during the same period the previous year.

Additionally, the distribution businesses’ rate of recovery has improved. It has increased to 91% in the first quarter of this year from 84% in the same period last year, indicating success in revenue collection.

Regarding circular debt, the Power division observed a notable change. Last year, between July and October, the circular debt grew by Rs301 billion. Nonetheless, this year’s first four months saw a relatively modest increase in circular debt, totaling about Rs11 billion.

These enhancements show promising developments in the electricity sector’s financial health in Pakistan, where initiatives are being made to accelerate recovery rates and slow the expansion of circular debt.

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