Petroleum Dealers Warn Nationwide Pump Shutdown After March 26 Over Margin Dispute

Karachi: Tariq Masaud 

Pakistan Petroleum Dealers Association warned that petrol pumps shut down after 26 March across the country, if the government fails to increase dealers’ margins.

Speaking in the news conference at Karachi Press Club (KPC), PPDA Chairman Abdul Sami Khan said petroleum dealers have been facing financial pressure due to rising operational costs while their margins remain unchanged.

“We have written letters to Prime Minister Muhammad Shehbaz Sharif, the Field Marshal Syed Asim Munir and other authorities, but our concerns have not been addressed, petroleum dealers have been trying to resolve matters through dialogues.”

According to PPDA, around 15,000 petrol pumps operating in Pakistan, also thousands of investors linked with the sector are struggling due to shrinking profitability.

PPDA Vice Chairman Tariq Hassan alleged that recent increases in petroleum prices have primarily benefited oil marketing companies (OMCs) rather than dealers.

“Government increased petrol prices in a way that benefited oil marketing companies (OMCs), while dealers continue to suffer,” Hassan said. The dealers’ commission increased only Rs1.78, but even that adjustment was effectively halted.

He further warned that dealers may be left with no option but to suspend operations if their demands are ignored.

“There is also a possibility that petrol prices could rise by another Rs50, which will further increase pressure on both dealers and the public,” he said.

PPDA Sindh President Haji Ameer Khan Mehsood also supports the association’s stance, saying petroleum dealers have repeatedly raised the issue of margins with government but received little response.

He said the current dealer's margin has effectively dropped to around 2.59 percent, which he described as unsustainable given the rising costs of electricity, salaries, & maintenance.

Ameer Khan Mehsood emphasized the government to immediately review margin structure, provide relief to dealers, warning that failure to do so could disrupt fuel supply across Pakistan.

“If our demands are not met by March 26, petrol pumps will be closed for an indefinite period,” he said.

PPDA also criticized repeated increases in petroleum levy & fuel prices, saying the burden ultimately falls on the public while retailers remain under financial strain.