ISLAMABAD: Petroleum dealers have raised serious concerns over the government’s failure to implement a long-promised increase in their sale margins, pending since July 2023. They demanded immediate action on a commitment to raise their margins by Rs1.40 to Rs2.20 per litre on petrol and diesel.
The issue was discussed at a meeting of the National Assembly’s Standing Committee on Petroleum, chaired by Syed Mustafa Shah. The committee directed the Petroleum Division, Oil and Gas Regulatory Authority (Ogra), and the Pakistan Petroleum Dealers Association (PPDA) to submit comprehensive reports to formulate a way forward.
Representatives of the PPDA expressed frustration over the non-implementation of the Economic Coordination Committee’s (ECC) decision from September 2023, which approved phased margin increases based on Pakistan State Oil’s (PSO) operating costs. Dealers said they had calculated a justified rise of Rs2.20 per litre in early 2024 due to inflationary pressures, but Ogra had only recommended a Rs1.40 per litre hike — still not approved after nine months.
During the session, a proposal was also floated to convert CNG stations into petrol pumps. Petroleum Minister Ali Pervaiz Malik said such conversions could be reviewed individually under the current petroleum policy, but no immediate changes were planned.
Addressing concerns on fuel quality, GST, and LPG pricing margins, the minister assured that these matters would be addressed in the upcoming budget. Ogra Chairman Masroor Khan added that petroleum prices are reviewed fortnightly with government approval, noting that PSO meets about 50% of national demand.
