ISLAMABAD: Petrol pump owners and dealers on Tuesday urged the government to immediately revise their commission in line with recent fuel price hikes, warning of a possible nationwide shutdown if their demands are not met.
The All Pakistan Petrol Pump Owners Association (APPPOA) and Pakistan Petroleum Dealers Association (PPDA) called for increasing their margin to 8% of the invoice price, arguing that the current fixed profit of Rs8 per litre is no longer sufficient to sustain operations amid rising costs.
Speaking at a press conference, PPDA Chairman Abdul Sami Khan said the cost of doing business had reached unprecedented levels, making it economically unviable to operate under outdated margins. He added that dealers were also struggling to absorb bank and card transaction charges, which currently stand at around 0.75% per Rs100 of fuel sold.
The associations warned that existing margins make it increasingly difficult to continue accepting bank credit and corporate fuel cards. They said their future course of action, including possible protests or shutdowns, would be decided in a stakeholders’ meeting scheduled in Karachi next week.
APPPOA Chairman Humayun Khan highlighted that the business was also being adversely affected by the influx of smuggled fuel, questioning the authorities’ failure to curb illegal cross-border supply.
Meanwhile, APPPOA Vice Chairman Nouman Ali Butt stated that retailers are currently operating on margins of less than 2%, which is unsustainable. He reiterated the demand for a guaranteed minimum margin with a flexible adjustment mechanism linked to fuel price fluctuations.
Referring to regulatory benchmarks, he noted that the Oil and Gas Regulatory Authority (Ogra) had earlier indicated a margin of Rs8.64 per litre for petrol pump operators.
The demand comes in the wake of sharp fuel price increases following regional tensions, including the recent conflict involving the United States and Israel against Iran. While the government initially raised petrol and diesel prices significantly, Prime Minister Shehbaz Sharif later reduced the petroleum levy by Rs80 per litre, bringing petrol prices down to Rs378 per litre.
Dealers maintain that without a timely revision in commissions, the sustainability of fuel retail operations across Pakistan will be at serious risk.
Story by Khaleeq Kiani
