Petroleum dealers' margin increased by 189pc: report
Business
The operational cost of petrol pumps also rose due the increased fuel prices
LAHORE (Dunya Investigation Cell) - In a stunning disclosure, the margin for petrol dealers in Lahore increased by a staggering 189% per litre between July 2018 and October 2023. This increase has placed a heavy burden on petrol consumers.
It was found that the Pakistan Tehreek-e-Insaf (PTI) government, after coming to power, increased the margin for dealers by a record-breaking 108% per litre of petrol. Subsequently, under mounting pressure, the government continued to raise their margins.
Comparatively, before the PTI government took power, dealers were earning a margin of Rs2.64 per litre petrol. However, on April 1, 2021, the PTI government further increased this margin by 5.7% to Rs2.97 per litre. In a subsequent move, the margin was raised by 24% to Rs3.68 per litre.
This signifies that the PTI government, during its tenure, escalated the dealers' margin on petrol by a total of 40%.
Interestingly, after the PDM coalition government took charge on December 16, 2022, the margin of dealers on petrol surged by approximately 36%, reaching Rs5 per litre. Furthermore, with an additional increase of 20% to Rs6 per litre, the PDM government raised the margin by a whopping 63% in just 15 months.
Over the past five years, from July 2018 to July 2023, the margin for petrol dealers witnessed an alarming rise of 127% per litre, soaring from Rs2.64 to Rs6 per litre. This drastic increase has proven burdensome for petrol consumers.
Recently, the Petroleum Dealers Association put pressure on the government to boost the dealer margin on petrol. In response to the threat of petrol pump closures, the Ministry of Petroleum decided to increase the margin by Rs1.64 per litre. However, this increment will be implemented gradually in four steps over 15 days each, starting September 1, 2023. By October 16, 2023, the margin is expected to reach Rs7.64 per litre.
Considering this agreement, the PDM government witnessed a significant rise in the margin for petrol dealers during its tenure, from Rs3.68 per litre to Rs7.64 per litre, representing an overall increase of 108%. Consequently, the margin per litre of petrol has escalated by a staggering 189%, going from Rs2.64 to Rs7.64 during the period from July 2018 to October 2023.
