The Pakistan Petroleum Dealers Association (PPDA) on Friday announced the postponement of its planned nationwide strike after the government assured it of an increase in dealers’ profit margins on petroleum products.

During a press conference in Karachi, PPDA Chairman Malik Khuda Baksh said the petroleum minister had spoken to him by telephone for half an hour and assured him that the dealers’ profit margin would be increased.

“The petroleum minister has indicated an increase of Rs1.34 in the profit margin after obtaining special approval from the prime minister,” he said.

Baksh said an Economic Coordination Committee (ECC) meeting had been convened on Thursday following the petroleum minister’s intervention. A special committee was also being formed to consider the oil marketing companies’ demand to abolish the quota system, he added.

“The government has accepted two of our important points,” Baksh said, adding that the association would seek maximum benefits for the petroleum industry from the government.

He said the government had also appreciated the dealers for “always standing with the state”.

On the issue of daily pricing of petroleum products, Baksh said the government’s proposed solution would be implemented in three stages and would take around two weeks.

“The government has accepted our demand for a minimum period for determining prices on a daily basis,” he said, adding that the dealers had proposed fixing prices for one month. “The government may agree to determining prices for seven days,” he added.

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PPDA Vice Chairman Tariq Hassan said the government had withheld the dealers’ inflation-linked adjustment of Rs1.34 per litre for the past four years, amounting to $50 million.

He said the profit margin would now increase from Rs8.84 per litre to Rs10 per litre. “The nationwide strike planned by petroleum dealers is being postponed,” Baksh said.

On Thursday, the PPDA said that negotiations with the government had failed, prompting petroleum dealers to begin an indefinite nationwide strike from August 15.

According to a statement by Baksh, the government refused during the negotiations to change the system of daily adjustments in petroleum product prices. However, it assured the dealers that it would discuss an increase of Rs1.34 in their margin, subject to approval by the federal cabinet.

“In view of the federal petroleum minister’s behaviour, the petroleum dealers’ delegation immediately left for Karachi and also called an emergency meeting of its executive committee,” the statement said.

It added that representatives of petroleum dealers remained committed to their decision to begin the strike from Saturday morning.

Read More: Petrol dealers to go on 'indefinite strike' on Saturday after talks with govt fail

Meanwhile, All Pakistan Goods Transport Alliance President Malik Shahzad Awan said talks between the federal and Sindh governments and the alliance had failed, with transporters vowing to continue their nationwide strike until their demands were accepted and a formal notification was issued.

“The federal government and Sindh government are not serious. Our nationwide strike will continue until our demands are approved,” Awan said, adding that the strike had continued across Pakistan for six days.

“We will not be swayed by any assurances from the federal or provincial governments,” he said. He urged transporters across Pakistan to “remain peaceful and not block roads anywhere”.