KARACHI, Aug 25: The Oil and Gas Regulatory Authority (Ogra) has reduced the petroleum dealers’ commission by 39 paisa per litre on August 24. Last year in March, dealers’ commission was reduced by 40 paisa per litre.

Pakistan Petroleum Dealers Association (PPDA) has threatened to call a countrywide strike to lodge the protest against the decrease in their commission in case the Ogra did not take back its decision within one week.

PPDA Chairman Abdul Sami Khan recalled that in 1994 the government and the representatives of oil marketing companies had decided that the dealers’ commission and OMCs’ commission would be fixed at five and four per cent, respectively, by 1996, but the decision could not be materialised.

The current government had fixed the dealers’ commission at four per cent in 2002, but the association continued its struggle for five per cent, he said. In 2006, the government instead of increasing the dealers’ commission had cut it by 40 paisa per litre.

The government had literally sent the dealers 10 years back by further cutting their commission on August 24 which would force the dealers to either close down their pumps or resort to wrong practices, Sami said in a statement.

He said there was a big difference in expenses (utility bills, social security, workers’ salary etc) in running a petrol pump in 1996 as compared with expenses in 2007.

He said that the executive committee of the PPDA will meet on August 27 to discuss the future course of action with regard to give a strike call.