📖 2 min read
Pakistan’s petroleum dealers have issued a stark warning that petrol pumps across the country could shut down indefinitely starting March 27 if the government fails to increase their profit margin to 8 per cent, the Pakistan Petroleum Dealers Association (PPDA) announced from Karachi on Friday.
At the emergency press conference, PPDA Chairman Abdul Sami Khan said the current margin has fallen to just 2.68 per cent due to surging petroleum product prices, squeezing dealers’ already-thin profits and rendering operations unsustainable at many outlets.
Petrol Price and Margin Demands
According to The Express Tribune , PPDA Vice Chairman Tariq Hassan warned of the possibility of another petrol price increase, suggesting rates could rise by Rs50 to Rs60 per litre if market conditions hold, though the government recently chose to freeze petrol prices in the latest fortnightly review to ease the burden on consumers.
Dealers argue that fixing the dealer margin at 8 per cent would lift their earnings from roughly Rs8 to Rs25 per litre, a difference they say is essential to cover costs.
The PPDA also raised concerns about smuggled Iranian diesel and petrol continuing to circulate widely, which they claim undermines legal retailers and destabilises the local market.
Impact on Fuel Supply and Price
The warning comes amid recent global energy volatility, with crude prices under pressure from geopolitical tensions in the Middle East, which have already driven significant fuel price hikes in Pakistan, including a prior Rs55-per-litre increase in petrol and diesel.
Dealers are pushing for policy adjustments that reflect rising import costs and protect margins lost to inflation and logistics expenses. Linked issues, such as dealer supply quotas and delayed deliveries by oil marketing companies, were also raised at the press briefing.
Industry watchers note that a shutdown of petrol stations nationwide could have wide‑ranging effects on transport logistics, commuting costs, and consumer sentiment. PakWheels has previously covered fuel price trends and transport affordability issues related to energy policy shifts in Pakistan’s automotive sector.
The PPDA has set March 27 as its deadline for government action on margin revisions. Official confirmation or a government response is pending, and discussions between dealers and authorities are expected in the coming days. Motorists and commercial transport operators should monitor updates closely as the situation evolves.
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