The Pakistan Petroleum Dealers Association (PPDA) has warned of a nationwide shutdown of petrol pumps after issuing a 72-hour ultimatum to the government to address their longstanding demands.
The association is particularly demanding an increase in the dealer margin on petrol sales to 8 per cent, arguing that the existing commission is no longer sufficient to cover rising business and operational expenses.
Nationwide Strike Threat
PPDA Chairman Malik Khuda Bakhsh, along with senior association officials, announced that petrol stations across the country would close indefinitely from 6am on Saturday, August 15, if the government fails to meet the dealers’ demands within the 72-hour deadline. The association says its members have lost patience over the delayed resolution of their concerns. According to the PPDA, more than 14,000 petroleum dealers are pressing the association to take decisive action.
Dealers Demand 8pc Petrol Margin
The main demand of petroleum dealers is an increase in their margin to 8pc of the retail price of petrol. Dealers argue that inflation and rising operating expenses have significantly reduced their profitability. They say the current commission does not adequately cover expenses such as electricity and gas bills, employee salaries, maintenance and other operational costs associated with running petrol stations.
Daily Price Mechanism Creates Financial Pressure
The PPDA has also raised concerns about the government's daily petroleum price mechanism, claiming that frequent price changes have created serious financial and operational challenges for dealers. According to the association, fluctuations in fuel prices can result in inventory losses, reduced working capital and additional financial pressure on petroleum retailers.
Government Assurances
The association recalled that Petroleum Minister Ali Pervaiz Malik had previously requested dealers to postpone a planned nationwide strike and assured them that their concerns would be reviewed and resolved within two weeks.
However, the PPDA says its major issues remain unresolved despite those assurances.
Company Allocation Policy Also Criticised
In addition to the margin issue, the PPDA Executive Committee has criticised the existing Company Allocation Policy, describing it as discriminatory and contrary to the interests of petroleum dealers. The association has demanded that the policy be reviewed immediately and replaced with a transparent and fair mechanism. The coming days will determine whether the government and petroleum dealers can reach an agreement before the deadline. If no resolution is reached, consumers across Pakistan could face a nationwide disruption in petrol supplies from August 15.
