Petrol pump dealers demand margin increase amid crisis
Petrol pump dealers urge government to raise margins to eight percent
ISLAMABAD: In Islamabad, leaders of the Pakistan Petrol Pumps Dealers Association and All Pakistan Petrol Pumps Owners Association have urged the government to immediately raise their profit margins to up to eight percent of the invoice price, warning that current conditions are no longer sustainable.
Speaking at a press conference held at the National Press Club, association representatives highlighted that existing margins have become impractical due to rising fuel prices, inflation, and sharply increasing operational costs. They stressed that continuing business under current financial pressures is becoming nearly impossible.
Leaders including Abdul Sami Khan and Humayun Khan stated that recent hikes in petroleum prices—driven by global market trends—have further squeezed already limited margins. They argued that while oil marketing companies benefit from price increases, dealers see no proportional gains.
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The associations pointed out that operating costs have surged significantly, in some cases by as much as 300 percent, alongside rising investment, financing expenses, and additional burdens such as increased credit card transaction charges. These factors, they said, have pushed the sector to the brink.
They also noted that the Economic Coordination Committee had previously approved an increase in dealer margins, but the decision has yet to be implemented. This delay, they warned, is further aggravating the crisis.
The dealers emphasized the need for a percentage-based commission system, arguing that fixed margins fail to adjust with fluctuating fuel prices. Under the current structure, they said, profits remain unchanged even as petroleum prices rise significantly, making business operations unsustainable.
Issuing a strong warning, the representatives stated that if their demand for an immediate margin increase is not met, petrol pumps across the country may be forced to shut down. Such a move, they cautioned, could severely disrupt fuel supply nationwide.
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