The Pakistan Petroleum Dealers Association (PPDA) has issued a fresh demand for an immediate increase in fuel profit margins, warning that the survival of petrol pumps across the country is at risk due to rising operational costs and stagnant margins. PPDA Chairman Abdul Sami Khan expressed frustration over the government’s failure to address the issue, despite repeated assurances, highlighting the severe financial strain on dealers amid continuous fuel price hikes.

Khan emphasized that while global crude oil prices have declined, domestic petrol and diesel prices in Pakistan have risen, placing a dual burden on dealers and consumers. “The persistent increase in petroleum product prices, coupled with unchanged margins, has made it nearly impossible to sustain business operations,” Khan stated in a press conference. He noted that the current dealer commission of Rs 8.64 per liter, unchanged since September 2023, is insufficient to cover escalating costs, such as electricity tariffs, employee wages, and other operational expenses.

The PPDA has formally written to Federal Petroleum Minister Ali Pervaiz Malik, urging an immediate increase in the margin to ensure the viability of the fuel retail sector. The letter highlights two price increases in the past two months despite a global oil price drop to $67.65 per barrel. The association has also requested an urgent meeting with the minister to discuss margin-related issues in detail, expressing disappointment over the lack of progress despite ongoing communication with the Petroleum Division.

The PPDA’s demands echo previous tensions, with the Pakistan Petroleum Dealers Association, a representative organization of petroleum dealers across the country, calling the strike on July 19 the need of the hour. However, Abdul Sami Khan denied rumors of petrol pump closures on that date, ensuring no disruption to fuel supply.