The 8th meeting of the Standing Committee on Energy (Petroleum Division) of the Parliament House held at recently at Parliament House Islamabad to discuss problems of petroleum dealers Association and sharing suggestions to improve petroleum industry. Malik Khuda Baksh presented a bouquet on behalf of Abdul Sami Khan, Chairman Pakistan Petroleum Dealers Association (PPDA), to Syed Mustafa Mehmood, Chairman of the Standing Committee, as a gesture of goodwill and representation from PPDA. He was accompanied by Raja Waseem (Vice Chairman-PPDA), Ch. Zafar Elahi (Member-PPDA), and Faisal Arif (Member-PPDA) of the Association. The meeting was chaired by Syed Mustafa Mehmood, MNA, who warmly welcomed the Federal Minister for Energy (Petroleum Division), Ali Pervaiz Malik, for his presence and participation. Federal Minister addressed the Committee, where key matters concerning the petroleum sector were discussed in detail. Malik Khuda Baksh, Senior Vice Chairman of the Pakistan Petroleum Dealers Association (PPDA), also took the opportunity to highlight the critical challenges faced by petroleum dealers across Pakistan, presenting the Association’s concerns and policy recommendations on behalf of Abdul Sami Khan, Chairman of PPDA. On the
matter of Deregulation of Petroleum Products Malik Khuda Baksh briefed the honorable committee about the high-level meeting held at PSO House, Karachi, which was attended by Minister of Petroleum – Musadik Malik, Chairman OGRA – Masroor Khan, Director General (Oil), MD PSO, delegation of PPDA, led by Chairman Abdul Sami Khan. He emphasized that deregulation of the petroleum industry was discussed in detail in that meeting, where Minister Musadik Malik assured Abdul Sami Khan that beside everything, we will make sure to consult your association and Chairman. Without your recommendation, we will not proceed with any decision. Due to the current illness of Abdul Sami Khan, Malik Khuda Baksh requested the honorable Standing Committee to defer the matter of deregulation to the next meeting. He assured the committee that PPDA would submit its formal recommendations and views in writing before the next session.The honorable Committee accepted the request and instructed PPDA to provide their views in writing for future discussion. On Credit Card Charges Deduction by Banks Malik Khuda Baksh then raised the ongoing financial issue concerning deduction of credit card charges by banks. He explained that PPDA members currently receive Rs. 8.64 per liter, from which banks deduct 0.8% to 1%, roughly equal to Rs. 2.10 per liter. After this deduction, we pay Staff salaries (which have increased in the past year), Utility bills payments, Local taxes and miscellaneous expenses, dealers are left with around Rs. 3 per liter. This leaves minimal profit margins, making it financially unsustainable for dealers to operate. He further informed the Committee that PPDA has repeatedly discussed the matter with the State Bank of Pakistan under the leadership of Chairman Abdul Sami Khan while the State Bank acknowledged the concern, no concrete decision has been made to date. Malik requested the Committee to intervene, proposing two options, Direct reduction of bank charges through a State Bank circular; or allow dealers to pass the credit card transaction charges onto customers, as is practiced globally.The Committee Chairman asked Mr. Malik to submit international evidence and practices regarding direct customer charges for card transactions at the next meeting. On discussion at Dealers’ Commission on Petroleum Products Mr. Malik Khuda Baksh informed the Committee that PPDA had a formal written proposal regarding revision of dealers’ commission. He requested that Ch. Zafar Elahi, Senior Member of PPDA, be allowed to present the details. The Committee granted permission, and Zafar Elahi took the podium. He stated that the initial demand from PPDA was a Rs. 2.80 per liter increase in dealers’ commission. After OGRA’s calculations and discussions, PPDA revised its demand to Rs. 2.10 per liter. OGRA approved a Rs. 1.40 per liter increase nearly 8 months ago, but implementation is still pending. He emphasized the increased financial burden and inflation, we are unable to survive in these circumstances. The matter has been delayed for 8 months, and inflation has reached its peak. He formally requested the Committee to recalculate the commission demand based on current economic indicators and allow PPDA to present an updated proposal in the next meeting.
The Committee and Minister Petroleum allowed the submission of a detailed presentation in the next session. On the issue of smuggling of Petroleum Products, Raja Waseem, Vice Chairman, PPDA, briefed the Committee on the issue of petroleum product smuggling, which is affecting local businesses. The Committee Chairman and the Federal Minister acknowledged the issue and informed that the volume of smuggling is now declining due to targeted efforts. The government is actively working to combat this issue, and visible progress has been made. The issue is being addressed alongside other matters in the petroleum sector. The meeting was concluded with appreciation from the Committee towards the PPDA for their detailed and well-prepared presentation under the guidance and vision of Chairman Abdul Sami Khan. The Committee acknowledged the concerns and provided the following assurances. Deregulation matter will be taken up in the next meeting upon receipt of PPDA’s formal written recommendations. Credit card commission issue will be re-evaluated based on international evidence and submitted proposals. Commission revision proposal is welcomed and can be presented by PPDA in the next session. Smuggling concerns are noted and will remain a part of the government’s ongoing enforcement agenda. In the end, special thanks given by Malik Khuda Baksh to the Chairman and members of standing Committee(MNAs),
Honorable Federal Minister, Chairman OGRA, DG Oil on behalf of the Chairman Pakistan Petroleum Dealers Association Mr. Abdul Sami Khan
