ISLAMABAD: Nationwide fuel supplies could soon be disrupted as filling station operators threaten a collective strike over stagnant profit margins.
The owners are demanding an immediate hike in their sales commission to match rising fuel costs, further complicating the government’s efforts to manage soaring inflation.
In a joint press conference, the All-Pakistan Petrol Pump Owners Association (APPPOA) and the Pakistan Petroleum Dealers Association (PPDA) called for revising dealer margins to 8.0% of the invoice price, arguing that the current fixed profit of Rs8 per litre is no longer viable amid soaring operational costs. They cautioned that without urgent action, fuel outlets may be forced to cease operations across the country.
“Currently, we are paying 0.75% to banks and card companies on every Rs100 of fuel sold,” explained one petrol pump owner, highlighting the growing burden of digital payment charges on already thin margins.
PPDA Chairperson Abdul Sami Khan said that soaring business costs have made it increasingly difficult for petrol pumps to operate under outdated profit structures, adding that stakeholders will meet in Karachi next week to decide their future course of action.
Khan said the latest fuel price hike came a day after a meeting with the petroleum minister, which he said failed to address dealers’ core concerns. He added that the issue has been compounded by an influx of smuggled fuel, noting that Balochistan notified petrol at Rs280/litre while alleging illegal imports of Iranian fuel being sold locally.
On April 6, the Balochistan government fixed the price of Iranian smuggled petrol at Rs190 per litre and high-speed diesel at Rs220 per litre, warning of strict action against overcharging.
APPPOA Chairperson Humayun Khan said the unchecked flow of smuggled fuel is severely hurting legitimate businesses and questioned the authorities’ failure to curb the practice at border points.
APPPOA Vice Chairperson Nouman Ali Butt said retailers’ margins are below 2.0%, calling them unsustainable, and demanded a guaranteed Rs6 per litre plus a flexible adjustment mechanism, noting Ogra had promised Rs8.64 per litre.
Standing on a joint platform, both associations said they would continue to push the government for an immediate revision in margins, warning that failure to act could disrupt fuel supply nationwide.
