Dealers Warn of Action if Response Is Delayed
The Pakistan Petroleum Dealers Association (PPDA) has issued a 48-hour ultimatum to the government, demanding a response to its request for an increase in dealer commissions and warning that it may take major action affecting fuel retail operations across the country.
PPDA Chief Advisor Malik Khuda Bakhsh said petrol pump operators are struggling to remain financially viable under the current commission structure. He argued that rising operational costs and shrinking margins have placed dealers under severe financial pressure.
According to the association, a final letter outlining its concerns will be sent to the Petroleum Minister. Furthermore, the PPDA warned that if authorities fail to respond within the specified timeframe, it will announce its next course of action, which could impact fuel supply and retail operations nationwide.
The association emphasized that dealers require immediate relief to sustain business operations and maintain uninterrupted services for consumers.
Declining Diesel Sales and Smuggling Raise Industry Concerns
Meanwhile, petroleum dealers reported a significant decline in diesel sales during May, estimating a drop of nearly 30 percent compared with previous levels.
Industry representatives claimed that fuel smuggling continues to expand, reducing legal market activity and undermining sales through licensed petrol stations. As a result, they argued that legitimate businesses are facing increasing financial difficulties.
In addition, Malik Khuda Bakhsh stated that five local refineries have formally expressed concerns to the government regarding the growing volume of smuggled fuel entering the market. According to refinery officials, weaker diesel demand has created storage challenges and operational pressures.
The PPDA noted that it supported government policies during periods of regional uncertainty but now expects authorities to address the financial challenges confronting fuel retailers.
Moreover, the association urged the Petroleum Minister to visit Karachi and assess conditions directly through consultations with industry stakeholders.
PPDA officials warned that if no relief measures are announced within the next two days, Chairman Abdul Sami Khan will reveal a final decision regarding future petrol pump operations.
The association maintains that without an increase in dealer commissions and stronger action against fuel smuggling, many businesses may find it increasingly difficult to continue operating under current market conditions.
