Published On: Tue, Dec 31st, 2013

Commission of Dealers and Retailers of Petroleum Products to Rise

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Corporate news (Pakistan News) Retailers of Petroleum Products

Corporate news (Pakistan News)

Based on the recommendations of the state-owned Pakistan Institute of Development Economics (PIDE) a delegation headed by the Petroleum Minister, Mr. Shahid Khaqan Abbasi held talks with dealers and retailers of petroleum products to increase their commission on the sale of petroleum products.

The delegation of the Petroleum Ministry proposed to increase the dealer’s commission from Rs2.78 to Rs2.85 per litre and Rs2.30 per litre to Rs2.40 per litre as dealers’ expenses on petrol and high speed diesel, respectively. The dealers negated this proposal and demanded Rs4.25 per litre as their commission on petrol and Rs3.50 per litre on high speed diesel. Mr. Abbasi insisted that such an increase would effect the general public directly and said that a balance had to maintained between the dealers and the general public as both these stakeholders showed trust on the government of PML-N in the general elections 2013.

The PIDE’s report, which stated that retailers and dealers of petroleum products would have to face an increase in the handling costs due to inflation, strengthened the demands of the stakeholders to increase their commission.

The conclusion of the meeting was that the petroleum minister decided to take up the matter with the Economic Coordination Committee (ECC) of the Cabinet for a final decision. In the meanwhile, Mr. Abbasi asked the dealers to submit a formal proposal for increase in their commission along with their estimates of expenses and desired that the dealers and companies should instead reduce their rate of return to help the government provide some relief to the consumers. A decision on this matter is expected in about 2 weeks time.

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