By Staff Reporter
KARACHI: Fuel retailers plan to shut down their pumps across the country from Saturday, demanding a higher profit margin from the government.
The Pakistan Petroleum Dealers Association, which represents more than 10,000 fuel stations, said in a statement that it wants a profit margin of 5 percent on petrol sales, up from the current 2.4 percent.
The association said the current margin was not enough to cover the rising costs of electricity, utilities, labor, and borrowing.
The association said it had an agreement with the government in 1999 to receive a 5 percent margin, which was later reduced to 4 percent in 2004 and then to a fixed amount of 6 rupees per liter.
It said it had approached the state minister for petroleum, Musadik Malik, several times to resolve the issue, but he did not visit Karachi as promised.
The association also complained about the smuggling of Iranian petrol and diesel into Pakistan, which it said had reduced its sales by at least 30 ercent.
It urged the government to take action against the illegal trade and protect the local industry.
The strike could disrupt fuel supplies and transportation in Pakistan, which relies heavily on road transport for goods and passengers.
The country has faced frequent fuel shortages in the past due to mismanagement, corruption and supply disruptions.
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