KARACHI: Petroleum dealers have given the government a 48-hour deadline to respond to their demand for higher dealer commissions, warning that failure to do so could trigger a major decision affecting fuel stations across the country.
According to the Pakistan Petroleum Dealers Association (PPDA), a final letter on the commission issue will be sent to the petroleum minister today. Dealers say operating fuel stations under the current commission structure has become financially unsustainable.
“Running petrol pumps on the existing commission is impossible. Dealers are under severe financial pressure,” said Malik Khuda Bakhsh.The PPDA’s chief adviser said that if the government does not take immediate action, the association’s 30-member committee will announce its future course of action. The association added that Chairman Abdul Sami Khan will make a final announcement if no response is received within two days.
Dealers also raised concerns over a sharp decline in diesel sales, claiming that smuggled fuel is increasingly dominating the market. Five domestic oil refineries have reportedly formally informed the government about rising fuel smuggling and its impact on the sector.
Refineries have warned that reduced diesel sales are pushing storage facilities towards capacity limits, creating operational challenges for the industry.Petroleum dealers noted that during periods of heightened tensions in the Middle East, the government had sought their cooperation to ensure uninterrupted fuel supplies. However, they now say they are facing mounting financial pressure and rapidly depleting working capital due to current market conditions.
The PPDA has urged the Petroleum Minister to visit Karachi to assess ground realities and review the financial losses being suffered by dealers.Dealers maintain that without immediate relief, continued operations may no longer be viable for many fuel station owners across the country.
