Consumers in Karachi, Islamabad and other cities have faced a shortage of petrol at some fuel stations, just two days after petroleum dealers announced that they would observe a nationwide strike the next week.All Pakistan Petroleum Dealers Association or APPDA, a body representing pump owners, is demanding a hike in dealers’ margin on the sale of petrol.On Tuesday, APPDA Chairman Abdul Sami Khan held a press conference in Islamabad to demand the increase. He said the pump owners’ expenditure, including salaries of the staff, had tripled due to inflation but the government had refused to deliver on its promise to increase the margin.”If the margin is not increased, petrol pumps will be closed all over Pakistan from November 5,” he declared.He demanded that the margin should be fixed at a minimum of 6% of the petrol and diesel price. Abdul Sami Khan claimed the government had promised to increase the margin to 5% of the price.Currently, petrol pump owners get a comparatively low profit margin that is fixed for each of the petroleum products irrespective of the price. They earn Rs3.91 and Rs3.30 on petrol and high speed diesel (HSD), respectively.Federation of Pakistan Chamber of Commerce and Industry (FPCCI) President Mian Nasir Hayat Magon has supported the petroleum dealers saying the increase in the electricity tariffs has also left the fuel station business un-proftiable.Additionally, he said, the dealers pay 12% Withholding Tax and a 20 paisas per litre fee under their Oil Marketing Licence on the little margin they earn. Magon claimed that it erodes at least Re1 per litre from the margin.The FPCCI has urged the government to protect the sector and avert a “fuel supply security” crisis, according to a statement released on Thursday. It warned that if the government failed to enter negotiations with the petroleum dealers, the sale of petrol to the end-consumer would be disrupted.
Shortage at fuel stations
Almost a week before the strike announced by pump owners, consumers have already faced a shortage at some of the fuel stations in Karachi and Islamabad.However, it was not immediately clear if the shortage is linked to the strike or the possible price hike likely to be announced on October 31.On Thursday, the Oil and Gas Regulatory Authority (Ogra) Chairman Masroor Khan told a Senate penal that petroleum prices would continue to rise until March 2022.Ogra reviews prices fortnightly and sends its recommendations to the finance ministry, which make the final decision.The prices were raised by up to Rs10.49 per litre on October 16.The government claims that petroleum prices are driven by fluctuations in the international oil market, where WTI crude oil crossed the $85 per barrel mark this month, for the first time since Oct 2014.
All Pakistan Petroleum Dealers Association protest
On Friday, APPDA protested what it called a lack of seriousness on the part of the government for talks.An APPDA spokesman said that the Director-General Oil at the Petroleum Division had invited them for talks on Friday but exhibited a lack of seriousness.He said the petroleum dealers were determined for the strike and fuel stations across the country would be shut down on November 5.
