The federal cabinet has approved an increase in petroleum dealers’ margin on the sale of petroleum products, SAMAA TV reported on Saturday.
The new rates of margin will take effect from August 1. The increase has been approved amid fears that petroleum prices may go up after the sharp decline in the value of the Pakistani rupee against the US dollar.
With the cabinet approval, the dealers’ margin on petrol and diesel has been set at Rs7 per liter.
The dealers’ margin on diesel has been increased by Rs2.87 and on petrol by Rs2.1 per liter.
The summary was approved through circulation days after the government held talks with Pakistan Petroleum Dealers Association (PPDA) which had threatened to go on a nationwide shutdown on July 18.
After the talks, the dealers called off the strike.
This is the second time in nine months that the government has increased dealers’ margin.
The last time, the PPDA went on strike was in November 2021. The strike was called off after the government increased the dealers’ margin by Rs0.99.
The Pakistani rupee has lost its value by Rs20 against the US dollar since the July 17 byelections in Punjab.
Since Pakistan imports most of its fuel, the depreciation of the rupee could possibly push up petroleum prices.
This coupled with the increase in the dealers’ margin may make petrol and diesel significantly expensive.