Business Recorder
KARACHI: Petroleum dealers have demanded an immediate increase in their sales commission, warning of a nationwide shutdown of fuel stations if their concerns are not addressed, as rising operational costs continue to squeeze margins. President of the Pakistan Petroleum Dealers Association (Sindh Region), Haji Ameer Khan Mehsud, said the current margin structure has become unsustainable for dealers across the country, urging the government to revise commissions to 8 percent of the invoice price. He stated that the demand had earlier been jointly raised by PPDA Chairman Abdul Sami Khan and All Pakistan Petrol Pump Owners Association Chairman Humayun Khan, and is now being reiterated collectively by senior representatives of both associations, including vice chairmen and regional office-bearers nationwide. READ MORE: Petroleum dealers demand hike in profit margins Mehsud said the existing profit of around Rs8 per litre is insufficient to meet escalating business costs, including utilities, wages, and compliance expenses. He added that the situation has been further aggravated by the growing use of digital payment systems, as dealers are required to pay approximately 0.75 percent per Rs100 transaction to banks and card service providers, making such transactions financially unviable under current margins. He noted that despite repeated representations, the margin has remained unchanged for a prolonged period, while the cost of doing business has surged to unprecedented levels, pushing many operators toward financial distress. Highlighting regional challenges, Mehsud pointed to the situation in Balochistan, where the provincial government has announced petrol availability at Rs280 per litre. He said the widespread smuggling of Iranian fuel, sold at locally determined prices, continues to undermine legal dealers, questioning the lack of effective enforcement against illegal trade. He further referred to assurances by the Oil and Gas Regulatory Authority (OGRA), which had indicated a margin of Rs8.64 per litre for petrol pump operators, adding that both dealer bodies are pressing the government to implement a viable and sustainable pricing framework. Mehsud warned that if the demands are not met, dealers across the country may be compelled to shut down operations, disrupting fuel supply. He added that PPDA leadership, along with other stakeholders, is scheduled to hold consultations next week to decide the future course of action. Copyright Business Recorder, 2026
Go to News Site