# Petroleum Dealers’ Margin Raised to Rs9.98 per Litre to Avert Nationwide Strike
**ISLAMABAD:** The Economic Coordination Committee (ECC) of the federal cabinet on Friday approved a **15.5 per cent increase in the margins of petroleum dealers** on petrol and high-speed diesel (HSD), prompting the Pakistan Petroleum Dealers Association (PPDA) to call off its planned nationwide strike.
Under the decision, dealers’ margins will rise by **Rs1.34 per litre**, from the existing Rs8.64 to **Rs9.98 per litre**, effective September 1, 2026.
Finance Minister Muhammad Aurangzeb chaired the ECC meeting virtually, while Finance Secretary Imdadullah Bosal attended the meeting in person. The meeting was convened on a public holiday after petroleum dealers announced plans for a nationwide strike from August 15.
Although the Finance Division did not disclose the exact increase in its official statement, government officials confirmed that the ECC approved the proposal submitted by the Petroleum Division.
The PPDA had issued a 72-hour ultimatum to the government, accusing it of failing to honour assurances regarding its demands. Following the ECC decision, the association withdrew its strike call.
The dealers had demanded that their existing fixed margin be replaced with a **variable margin equivalent to 8 per cent of the retail price** of petrol and diesel. At current prices, this would have increased their margin to approximately Rs26 per litre on petrol and Rs30 per litre on diesel, potentially placing a significant additional burden on consumers.
The government instead approved a **15.51 per cent increase in the fixed margin**.
The margin of oil marketing companies (OMCs) will remain unchanged at **Rs7.87 per litre** for both petrol and diesel. A separate proposal to increase the OMC margin by Rs1.22 per litre remains linked to the implementation of digitisation measures.
The ECC also reviewed the broader issue of dealers’ margins in the context of the government’s shift from fortnightly to **daily petroleum price revisions**. Dealers had opposed the daily pricing mechanism and sought a margin linked to retail prices, but the government decided to retain the existing daily pricing system.
In December 2025, the ECC had approved a Rs2.56 per litre increase in dealers’ margins. However, the federal cabinet subsequently modified the decision, making implementation conditional on the achievement of digitisation targets by OMCs and petroleum dealers.
The issue remained unresolved as the digitisation process continued. Petroleum Minister Ali Pervaiz Malik held talks with representatives of the All Pakistan Petrol Pump Owners Association and PPDA on July 22, with senior Petroleum Division officials and the Oil and Gas Regulatory Authority (OGRA) chairman also in attendance.
During those discussions, dealers urged the government to delink the increase in their margins from digitisation, arguing that implementation of the initiative was primarily the responsibility of OMCs. They also reiterated their demand for an 8pc margin based on the retail price of petrol and diesel.
The latest ECC decision has temporarily resolved the dispute and averted a nationwide shutdown of petrol stations.
Story by Mubarak Zeb Khan
