The Pakistan Petroleum Dealers Association (PPDA) on Friday called off its planned nationwide strike after the government approved a Rs1.34 per litre increase in the dealers’ margin on petroleum products.

The association had announced plans to close petrol stations across the country from Saturday morning after talks with the government ended without a breakthrough on Thursday.

The decision to suspend the strike came after the government agreed to raise the dealers’ margin by Rs1.34 per litre, taking the total margin to Rs10 per litre, according to the PPDA.

PPDA Chairman said the association had postponed the strike on the basis of assurances given by the government.

The dealers had been demanding an 8% margin, arguing that rising operating costs, electricity bills and franchise fees had made it increasingly difficult to run their businesses.

Following the agreement on the Rs1.34 increase, a joint committee has been formed to examine the dealers’ demand for an 8% margin. The committee will submit its report within 30 days.

ECC approves margin revision

The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, approved the revision in dealers’ margins on petroleum products.

According to the details, the ECC considered a Petroleum Division summary seeking revision of dealers’ margins for motor spirit and high-speed diesel.

Following deliberations, the committee approved the revised margins for dealers of both products.

The development came a day after negotiations between the government and the PPDA ended in a deadlock, with dealers rejecting the proposed Rs1.34 per litre increase at the time.

The dealers had also opposed the government’s newly introduced daily petroleum pricing mechanism, arguing that frequent price changes were disrupting their business operations.

The government, however, had ruled out withdrawing the daily pricing system, under which petroleum prices are revised on the basis of prevailing market conditions.

With the government now agreeing to the margin increase and forming a committee to consider the broader 8% demand, the PPDA has decided to suspend its planned strike.