KARACHI: Petroleum dealers have issued a strong warning of a countrywide shutdown of fuel stations, demanding an immediate increase in sales commissions amid rising operational costs.
President of the Pakistan Petroleum Dealers Association (Sindh Region), Haji Ameer Khan Mehsud, said the current margin structure has become unsustainable, urging the government to revise commissions to 8% of the invoice price.
He noted that the demand had earlier been jointly raised by PPDA Chairman Abdul Sami Khan and All Pakistan Petrol Pump Owners Association Chairman Humayun Khan, and is now being echoed nationwide by representatives of both bodies.
Mehsud highlighted that the existing profit of around Rs8 per litre is insufficient to cover escalating costs, including utilities, salaries, and regulatory compliance. He added that the growing use of digital payments has further strained dealers, as bank and card charges of approximately 0.75% per transaction significantly reduce margins.
Despite repeated appeals, the commission has remained unchanged, pushing many operators toward financial distress. He also pointed to challenges in Balochistan, where the influx of smuggled Iranian fuel—often sold at lower, unregulated prices—continues to undermine legal businesses.
Referring to earlier assurances by the Oil and Gas Regulatory Authority (OGRA), which indicated a margin of Rs8.64 per litre, Mehsud urged the government to implement a sustainable pricing framework.
He warned that failure to address these concerns could lead to a nationwide shutdown, disrupting fuel supply. Consultations among PPDA leadership and stakeholders are expected next week to decide the future course of action.
