The Pakistan Petroleum Dealers Association (PPDA) and the All Pakistan Petrol Pump Owners Association (APPPOA) have warned that petrol pumps across the country may close if their demand for higher commissions is not met.
At a press conference in Islamabad, PPDA Chairman Abdul Sami Khan said the association had considered striking but decided against it to avoid hurting the public. He added that the government had not invited them to meetings or consulted them on key issues.
Humayun Khan called for their commission to be increased to 8 percent, accusing the government of trying to collect all taxes from the petroleum sector. He also mentioned that a strike could be announced after their next meeting. He warned that under current conditions, some dealers might sell their pumps and shut down operations.
He claimed that the Balochistan government had fixed petrol prices at Rs-280 per litre and suggested that Iranian fuel was entering the market and being priced locally.
APPPOA Chairman Humayun Khan said their main demand is for a proportional commission, which would increase when fuel prices rise. He explained that the current commission system is making their business unsustainable.
Humayun stated that petrol pump owners cannot continue operating at the current commission and urged the government to address their concerns before closures begin. He also said that in Punjab, unrelated government bodies were inspecting petrol pumps, implying that authorities were unfairly targeting traders under pressure from the U.S.
Currently, petrol pump owners earn a commission of Rs-8 per litre, but multiple taxes are deducted from it. Humayun added that smuggled fuel is also affecting their business, questioning why authorities have not stopped it and who is responsible for controlling cross-border smuggling.
He further accused oil marketing companies of hoarding petrol and said if dealers don’t earn enough, continuing the business would be impossible.
Last week, Prime Minister Shehbaz Sharif announced a reduction of Rs-80 per litre in the petroleum levy on petrol, after prices had been increased by Rs-137 per litre, bringing the price down to Rs-378 per litre. Previously, the government had raised petrol prices to a record Rs458.4 per litre, increasing the petroleum levy from Rs-106 to Rs-161 per litre.
Diesel prices were also increased to a record Rs520.35 per litre, though the petroleum levy on diesel was removed, leaving only an Rs2.5 per litre carbon levy alongside import duties.
On March 25, APPPOA warned that petrol pumps might close nationwide if the government did not address urgent issues in the petroleum sector. In a letter to Power Minister Ali Pervaiz Malik, APPPOA Vice Chairman Nouman Ali Butt requested an urgent meeting to discuss problems affecting 14,000-15,000 petrol pump owners, saying that failure to respond could worsen the fuel crisis.
Earlier, on March 4, APPPOA wrote to Prime Minister Shehbaz Sharif about potential petrol shortages due to delays in fuel supply. They said oil marketing companies were restricting fuel delivery, sometimes cancelling orders, which caused long delays for trucks and left stations running dry.
