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Burning issue: Fuel stations demand bigger profits

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MULTAN / BAHAWALPUR: 

Sale of petrol at over 3,700 petrol pumps in 16 south Punjab districts remained suspended on Monday due to a strike by the Pakistan Petroleum Dealers Association. Its members are demanding that the government increase their sales margin from 1.5 per cent to five per cent.

Addressing a press conference on Monday, Pakistan Petroleum Dealers Association Bahawalpur chapter president Muhammad Yaseen said the strike would continue till their demands were met.

He said in 2000, the government had made a pact with pump owners that sales margin will be increased over time. He said the sales margin in 2004 and 2005 was four per cent. “Instead of increasing the share, the government has reduced it to less than two per cent.”

He said petrol pump owners paid sales tax and income tax, but their share of profit remained low.

Reiterating the long standing demand of pump owners, Yaseen said petrol pumps across south Punjab will remain closed till their demands were met.

In Multan, Muhammad Iqbal, the Petroleum Dealers Association Punjab general secretary, said that the Oil and Gas Regulatory Authority had failed its commitment to raise their commission.

He said the owners wanted five per cent of sale price (Rs5. 18 per litre petrol and Rs5.40 per litre diesel). He said currently they were being given Rs1.35 per litre on all petroleum products.

In the recent past, the Petroleum Association (Punjab) had been selling petroleum products at a commission of 3 to 3.5 per cent. Ogra had ordered raids on petrol pumps after this was reported in the media.

Finding hundreds of pump owners charging excessive commission, Ogra had fixed 1.5 per cent commission rate on all petroleum products.

Citizens in Multan, Khanewal, Lodhran, Vehari, Dera Ghazi Khan, Layyah, Bhakkar, Rajanpur, Muzaffargarh, Bahawalpur, Bahawalnagar, Rahim Yar Khan, Okara, Pakpattan and Sahiwal faced problems due to non-availability of petrol. Several places where petrol was available, it was sold for Rs200 to Rs350 per litre.

Syed Muhammad, a resident of Multan, told The Express Tribune that he had walked seven kilometres to reach a petrol pump at Square No 9, only to find that it was not open. He said he had to walk several kilometres to purchase petrol thrice its price from a group of nomads who had bought it from pumps that were operating on the outskirts of the city.

The Petroleum Association plans to expand the strike across the Punjab in 24 hours.

Published in The Express Tribune, December 10th, 2013.



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