The federal government has approved a higher profit margin for petroleum dealers, bringing an end to the threat of a countrywide strike at petrol pumps. The Economic Coordination Committee (ECC) of the Cabinet raised the dealers’ margin on both petrol and high-speed diesel by Rs 1.34 per litre. The new rate is Rs 9.98 per litre, up from the previous Rs 8.64 per litre. This is an increase of about 15.5 per cent.
Finance Minister Muhammad Aurangzeb chaired the ECC meeting, which considered a summary from the Petroleum Division. The higher margin will come into effect from 1 September 2026. After the decision, the Pakistan Petroleum Dealers Association (PPDA) immediately called off its planned indefinite strike that was due to start on 15 August.
Dealers had been demanding better returns, saying the old fixed margin was too low to cover rising costs. They had given the government a 72-hour ultimatum and warned that pumps across the country would shut down if their concerns were not addressed. The association had also raised issues about daily fuel pricing and digitalisation requirements linked to earlier margin increases.
The government’s step has prevented major disruption to fuel supplies for the public and transport sector. Petrol pump owners welcomed the move and thanked the authorities for listening to their demands. A joint committee will still look at the dealers’ longer-term request for an 8 per cent margin and report within 30 days.