Petroleum dealers seek update on unresolved issues

KARACHI: The Pakistan Petroleum Dealers Association (PPDA) has urged the federal government to provide an update on the resolution of long-standing issues facing petroleum dealers.

In a letter addressed to Minister for Petroleum Ali Pervaiz Malik, PPDA Chairperson Malik Khuda Bakhsh said dealers are awaiting progress on commitments made by the government after the association postponed its planned nationwide strike.

The association also warned that the daily petroleum price revision mechanism is creating significant financial and operational challenges for retail outlets across the country.The chairperson said since assuming office, he has received increasing concerns from petroleum dealers and members of the PPDA Executive Committee over unresolved issues affecting the retail petroleum sector. He added that the association’s leadership is under immense pressure from members to secure tangible progress and keep them informed of developments.

According to the letter, the association agreed to defer its proposed strike after the petroleum minister assured it that the issues would be reviewed and resolved within two weeks. The PPDA said it has honoured the government’s request in the national interest and expects timely progress on the matter.

However, the association said petroleum dealers across the country are now seeking an update on the status of those commitments. The PPDA said frequent price revisions are resulting in inventory losses, erosion of working capital and mounting financial pressure on filling stations. It added that small and medium-sized dealers are particularly vulnerable under the existing pricing mechanism and are finding it increasingly difficult to sustain their businesses.

The association warned that if the issues remain unresolved and no effective remedial mechanism is introduced, the financial stability of petroleum retail outlets could be adversely affected, potentially disrupting the smooth supply of petroleum products to consumers.

The PPDA called on the petroleum minister to intervene and sought an update on the measures being considered by the Ministry of Petroleum and other relevant stakeholders to address the concerns of petroleum dealers.