Islamabad [Pakistan], July 20 (ANI): The Pakistan Petroleum Dealers Association (PPDA) on Thursday announced an indefinite strike, starting from Saturday, and demanded an increase in the distributors’ commission, ARY News reported.
According to the official notice issued by PPDA Chairman Abdul Sami Khan, the association has demanded the government increase the distributors’ commission.
The notice adds that the association sent a letter to the Minister of Petroleum, Musadik Malik, to bring this and several other issues to his attention. However, the minister never responded to the association’s grievances.
Currently, the government allocates a commission of 2.4 per cent per litre to the dealers.
The association stated that the strike will continue until the petroleum ministry takes concrete steps towards the issue, reported ARY News.
Earlier, the oil marketing companies (OMCs) had written a letter to the Oil Companies Advisory Committee (OCAC) to the federal government, demanding to set OMC’s margin petrol and for high-speed diesel (HSD) at Rs 12 per litre, reported Dawn.
Within months after an over 25 per cent increase, the OMCs have formally demanded a 100 per cent increase in their profit margins on the sale of petroleum products to “ensure the survival” of the industry, Dawn reported.
“OMC’s margin for high-speed diesel (HSD) and petrol should be set at Rs12 per litre”, to maintain the feasibility and ensure the survival of OMCs, wrote the Oil Companies Advisory Committee (OCAC) to the federal government. The cartel representing more than three dozen oil companies and refineries said the Rs12 per litre margin would amount to less than 6pc of the current ex-refinery price.
Sources in the Petroleum Division said the dealers would also be raising similar demands as the two segments of the supply chain normally moved in tandem with each other. The dealers’ commission was also increased by more than 25 pc last year to Rs 7 per litre, according to Dawn.
The OMCs margins were last increased to Rs 6 per litre from Rs 3 and Rs 3.68 per litre on petrol and HSD sales in November last year as demanded by the industry and conceded by former prime minister Shahid Khaqan Abbasi and Minister of State for Petroleum Musadik Malik with the anticipation that quality of petroleum products would improve. The cent per cent acceptance of demand for an increase in dealers’ commission and OMCs margins encouraged the industry to raise the bar higher with a 100pc increase in existing rates.
Meanwhile, Geo News reported that he oil companies of Pakistan are on the verge of ‘collapse’ due to a reeling economic crisis and devaluation of the currency.
The Oil Companies Advisory Council (OCAC) in a letter to the Oil and Gas Regulatory Authority (OGRA) and Energy Ministry, wrote about the “depreciation” of the local rupee which has affected a lot of businesses in the South Asian country, drastically. (ANI)
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