Petrol Pumps to Shut Across Pakistan from August 15: PPDA
KARACHI, August 11, 2026: The Pakistan Petroleum Dealers Association (PPDA) has issued a final 72-hour deadline to the government to resolve longstanding issues faced by petroleum dealers, warning that failure to address their demands could lead to the closure of fuel stations across Pakistan.
The decision was taken at an urgent meeting of the PPDA Executive Committee, chaired by PPDA Chairman Malik Khuda Baksh, where members expressed serious concern over the recently introduced 24-hour fuel price change mechanism, describing it as impractical and detrimental to the smooth operation of retail fuel outlets.
The association said frequent price changes are creating operational difficulties and financial uncertainty for petroleum dealers and demanded immediate corrective measures.
Dealers Demand 8% Commission
The PPDA reiterated its longstanding demand for the dealers’ commission to be fixed at 8% of the retail selling price, stating that the existing margin is insufficient to cover rising operational costs, inflation, utility bills, labour expenses and regulatory compliance requirements.
Company Allocation Policy Challenged
The association also strongly criticised the existing company allocation policy, calling it discriminatory and harmful to the sustainability of petroleum dealers. PPDA has demanded an immediate review and reform of the policy to ensure fairness and transparency.
Concerns relating to dealers associated with Total PARCO were also discussed, with the association deciding to take up the matter with the company’s senior management and relevant regulatory authorities.
PPDA Opposes NOC Requirement After Lease Expiry
The association also rejected the Senate Committee’s direction requiring petroleum dealers to obtain an NOC from the outgoing Oil Marketing Company (OMC) after expiry of their lease.
PPDA said the requirement is unjust and creates undue dependence on the outgoing OMC. It demanded that OGRA immediately withdraw or reconsider the notification, maintaining that after expiry of a lease, dealers should have the right to freely change their OMC, subject only to lawful regulatory requirements.
Nationwide Protest or Closure on the Table
The Executive Committee also discussed various options available to the association, including nationwide protest measures and, as a last resort, suspending or winding up business operations if the legitimate concerns of petroleum dealers remain unresolved.
PPDA urged the government to take immediate and practical measures to protect the interests of petroleum dealers and prevent disruption to fuel supplies across the country.
The association said it remains committed to constructive engagement with the Government, OGRA, OMCs and other stakeholders, but stressed that the current situation requires urgent action.
“If the legitimate demands of petroleum dealers are not addressed within 72 hours, we will have no option but to close fuel stations across Pakistan,” the PPDA said, urging the government to act immediately to avoid a nationwide disruption in fuel supplies.
