Petroleum Dealers’ Commission Issue to Be Resolved After Stability Returns: Minister

Ali-Pervaiz

KARACHI: Federal Minister for Petroleum and Natural Resources Ali Pervaiz Malik has assured that the long-pending issue of petroleum dealers’ commission will be addressed on a priority basis once the prevailing war-like situation stabilises.

The assurance came during a meeting in Islamabad with a delegation of the Pakistan Petroleum Dealers Association, led by Chairman Abdul Sami Khan, along with senior members of the association.

The minister acknowledged the challenges faced by petroleum dealers amid ongoing regional tensions, stating that the government is actively working with stakeholders to manage the crisis while ensuring relief for the public. He emphasised that although the issue of dealer commission remains under consideration, its implementation has been delayed due to the current situation.

He noted that oil marketing companies are already aware of the matter and confirmed that a summary regarding the commission has been signed by the Ministry of Petroleum and the Federal Board of Revenue. The issue has also been taken up with Prime Minister Shehbaz Sharif, the federal cabinet, and other relevant authorities.

Highlighting industry concerns, PPDA representative Malik Khuda Bakhsh warned that current dealer margins are unsustainably low, putting several petrol pumps at risk of closure. He urged the government to implement the previously agreed formula for margin revision without further delay.

He also pointed out that a proposed increase of Rs1.34 in dealer commission over the past two years had been linked to the installation of an auto-gauge system, stressing that the increase should be granted independently.

The association further demanded that, once conditions stabilise, dealer margins be set at a minimum of 8% in line with investment levels. PPDA members also called for formal documentation of the meeting and consideration of recommendations presented during the session, including those by Chaudhry Zafar Elahi.

The minister reiterated the government’s commitment to resolving the issue in consultation with stakeholders, once the broader economic and geopolitical situation improves.

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