The Pakistan Petroleum Dealers Association (PPDA) has announced shutting down of nationwide petrol pumps from July 18, demanding that the minimum commission margin be increased to six percent.
PPDA Chairman Abdul Sami Khan has stated that at the current rate of margin, it was not possible for them to continue the sales of POL products.
He said that the current minimum margin on petroleum products of 3.5 percent was not sustainable and should be increased at least up to six percent to continue operations.
According to media reports, withdrawal of subsidies and enforcement of more taxes on petroleum products has decreased the demand of petroleum products, with petrol and diesel’s demand falling to 12 and 16 percent respectively in June.
According to the Oil Companies Advisory Council (OCAC) Chairman Waqar Irshad Siddiqui, there is possibility of collapse in energy supply because of the financial difficulties faced by the oil industry. The reason behind the lack of supply chain has been linked with refusal from the international banks from accepting Pakistani banks’ letters of credits (LCs).
Earlier in November 2021, PTI-led government had agreed to PPDA for increasing the margin to 99 paisas on petrol, 83 paisas on diesel and 83 paisas on high speed diesel.
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