The Economic Coordination Committee (ECC) has approved a Rs1.34 per litre increase in dealers’ margins on petrol and high-speed diesel, easing a dispute that had threatened fuel supplies across Pakistan.
The decision raises the dealer margin on both Motor Spirit (MS) and High-Speed Diesel (HSD) from Rs8.64 to Rs9.98 per litre, effectively taking it to around Rs10.
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Finance Minister Senator Muhammad Aurangzeb chaired the ECC meeting at the Finance Division on Friday. The committee considered a Petroleum Division summary seeking a revision in margins for petroleum dealers.
The approval came after petroleum dealers threatened a nationwide strike from Saturday, August 15. Following the government’s decision, the Pakistan Petroleum Dealers Association postponed the planned action.
The PPDA said it “had postponed Saturday’s planned strike based on the government’s assurances”.
Dealers Get Rs1.34 Per Litre Increase
The Rs1.34 increase represents a rise of about 15.5% over the previous Rs8.64 margin. Dealers will now receive Rs9.98 on every litre of petrol or diesel sold.
The adjustment follows months of demands from fuel retailers for higher margins. Dealers had argued that rising operating expenses had made the existing structure difficult to sustain. Earlier this year, industry representatives warned that margins below 2% were putting pressure on filling station operators.
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The government had previously approved a phased revision of petroleum sector margins. An earlier ECC decision linked part of the increase to progress on digitising fuel sales and stock monitoring. The Petroleum Division had to report on that progress by June 1, 2026.
Vice Chairman of the All Pakistan Petrol Pump Owners Association Nauman Ali Butt confirmed Friday’s increase. He also thanked the prime minister and petroleum minister for addressing the dealers’ demand.
Nationwide Fuel Strike Averted
The decision appears to have removed the immediate threat of widespread petrol pump closures.
PPDA Chairman Malik Khuda Baksh said the petroleum minister had personally discussed the issue with him. He said the minister indicated that dealers would receive a Rs1.34 increase after securing special approval from the prime minister.
The revised margin applies separately to both petrol and HSD. Therefore, the dealer margin stands at Rs9.98 per litre for each fuel rather than a combined Rs19.96 charge on a single litre.
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Federal ministers Rana Tanveer Hussain, Ali Pervaiz Malik and Ahad Khan Cheema attended the ECC meeting. Federal secretaries and senior officials from relevant ministries and divisions also participated.
The agreement provides immediate relief to dealers while avoiding a possible disruption in fuel supplies during the Independence Day weekend. Attention will now turn to how the revised margin fits into the government’s wider petroleum pricing and digitisation reforms.
