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Fuel stations stop sale in Pakistan over govt’s failure to increase profit margins

The Pakistan Petroleum Dealers Association (PPDA) has announced the closure of petrol stations in the entire country for an indefinite period starting from Saturday, July 22, 2023, as a result of their dissatisfaction with the lack of an increase in dealers’ margins. The spokesperson for the association, Abdul Sami Khan, stated that the industrial action […]

The Pakistan Petroleum Dealers Association (PPDA) has announced the closure of petrol stations in the entire country for an indefinite period starting from Saturday, July 22, 2023, as a result of their dissatisfaction with the lack of an increase in dealers’ margins.

The spokesperson for the association, Abdul Sami Khan, stated that the industrial action will now make petrol pumps operational for two days during the month of Muharram (July/August) specifically on the 9th and 10th (July 27 and 28, 2023)

Khan made it known that the current margin per litre stands at Rs6, but the association has been demanding an increase of Rs5, in order to bring it to Rs11 per litre.

He alleged that the government of the country is taking not any action against the rampant smuggling of petrol and diesel from Iran, saying that the unauthorised sale of Iranian petrol and diesel have caused a significant 30% decline in the revenues of authorised petroleum dealers.

According to him, the dealers’ association has repeatedly contacted the minister of state for petroleum to bring these issues to his attention, but they have yet to receive any response.

Khan also mentioned that the licences of 20 dealers have been cancelled for selling Iranian petrol. He acknowledged the presence of unscrupulous individuals within the association but stressed that the Balochistan chief minister (a province in Pakistan) has explicitly stated that the petrol being sold originates from bordering Iran.

Khan who highlighted the inflation rate of petroleum in the country, said it has reached a record high of 28% compared to 2022.

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