Petroleum Dealers Threaten Nationwide Shutdown Over Margin Dispute

Karachi: The Pakistan Petroleum Dealers Association has rejected the government’s proposed margin increase, threatening a nationwide shutdown of fuel pumps if their demands are not met within ten days. The Association, led by Chairman Abdul Samad Khan, is calling for an 8% dealer margin, a significant rise from the current 3.12%.

In a press conference held in Karachi, Abdul Samad Khan, accompanied by other association leaders, stressed the necessity of the margin increase for the viability of their operations. “It is not possible to run the pumps without this margin; we will shut them down,” stated Khan, emphasizing the urgency of the dealers’ demands.

Khan announced a ten-day ultimatum for the government to respond to their requests, after which the dealers plan to convene a core committee meeting to decide on their next course of action. The association is seeking a written assurance from the government, proposing that the margin could be increased in installments if necessary.

The dealers also raised concerns about the impact of smuggled petrol and diesel on their business, estimating that such activities account for approximately 40 to 50 percent of fuel sales in Pakistan. They argue that this illegal trade further exacerbates the challenges faced by legitimate dealers, complicating their ability to operate sustainably.