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Karachi: Petroleum Dealers in Cash-strapped Pakistan They have threatened to stage a nationwide strike from Saturday as they are unhappy with the government led by Shahbaz Sharif for failing to increase their profit margins, a media report said on Friday.
Speaking at a press conference here, the head of the Pakistan Petroleum Traders Association, Samiullah Khan, expressed frustration over the government’s inability to raise their profit margin to 5 percent on the sale of two major oil producers, the Express Tribune reports.
Currently fixed at Rs 6 per liter (2.4 per cent), the 5 per cent margin will come to over Rs 12 per liter, given prevailing petrol and diesel prices of Rs 253/litre and Rs 253.50/litre, respectively, according to the report. .
Latest work every two weeks to determine Prices of petroleum productsfrom 16th July, he indicated that the merchants were receiving 7 rupees/litre instead of 6 rupees/litre.
However, the margin of 7 rupees is much less than the 5 percent demand that the dealers were constantly making, a promise made by Shahbaz government After assuming power in April 2022.
A trader told the newspaper later that Minister of State (Petroleum Department) Mossadeq Malik has contacted the head of the association and promised to hold a meeting with them in Karachi on Saturday.
However, if a meeting is not held or there is no satisfactory outcome, the strike will continue, except on the 9th and 10th of Muharram (which falls on July 28-29) to ensure that the religious event is not affected.
The increasing cost of doing business has offset profit margins, leaving many dealers with negative profit margins.
The report said that the government’s delay in fulfilling its promise left the dealers in a critical position with the end of the parliamentary session next month.
They fear that they may remain in limbo for another three to six months during the interim preparation until the next elected government takes office.
The report said that another challenge facing merchants is the presence of smuggled Iranian products, especially diesel, in the local markets, which has led to a decrease in sales by about 30 percent.
Dealers say that with current margins, it’s almost impossible for gas stations to operate efficiently.
The president of the association said there are 12,000 filling stations nationwide, of which about 10,000 are association members.
He also noted the worrying rate of inflation, which reached a six-decade high of 38 percent in May, with average annual inflation rising to 29 percent in FY23 compared to 11 percent in FY22.
Electricity and gas charges increased, and the benchmark KIBOR rate for bank borrowing reached a new all-time high of 23 percent.
The report noted that the government initially promised margins of 5 percent in 1999, gradually reduced them to 4 percent by 2004, and eventually set them at 6 rupees (2.4 percent) during its outgoing term.
Speaking at a press conference here, the head of the Pakistan Petroleum Traders Association, Samiullah Khan, expressed frustration over the government’s inability to raise their profit margin to 5 percent on the sale of two major oil producers, the Express Tribune reports.
Currently fixed at Rs 6 per liter (2.4 per cent), the 5 per cent margin will come to over Rs 12 per liter, given prevailing petrol and diesel prices of Rs 253/litre and Rs 253.50/litre, respectively, according to the report. .
Latest work every two weeks to determine Prices of petroleum productsfrom 16th July, he indicated that the merchants were receiving 7 rupees/litre instead of 6 rupees/litre.
However, the margin of 7 rupees is much less than the 5 percent demand that the dealers were constantly making, a promise made by Shahbaz government After assuming power in April 2022.
A trader told the newspaper later that Minister of State (Petroleum Department) Mossadeq Malik has contacted the head of the association and promised to hold a meeting with them in Karachi on Saturday.
However, if a meeting is not held or there is no satisfactory outcome, the strike will continue, except on the 9th and 10th of Muharram (which falls on July 28-29) to ensure that the religious event is not affected.
The increasing cost of doing business has offset profit margins, leaving many dealers with negative profit margins.
The report said that the government’s delay in fulfilling its promise left the dealers in a critical position with the end of the parliamentary session next month.
They fear that they may remain in limbo for another three to six months during the interim preparation until the next elected government takes office.
The report said that another challenge facing merchants is the presence of smuggled Iranian products, especially diesel, in the local markets, which has led to a decrease in sales by about 30 percent.
Dealers say that with current margins, it’s almost impossible for gas stations to operate efficiently.
The president of the association said there are 12,000 filling stations nationwide, of which about 10,000 are association members.
He also noted the worrying rate of inflation, which reached a six-decade high of 38 percent in May, with average annual inflation rising to 29 percent in FY23 compared to 11 percent in FY22.
Electricity and gas charges increased, and the benchmark KIBOR rate for bank borrowing reached a new all-time high of 23 percent.
The report noted that the government initially promised margins of 5 percent in 1999, gradually reduced them to 4 percent by 2004, and eventually set them at 6 rupees (2.4 percent) during its outgoing term.
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