President of the Pakistan Petroleum Dealers Association (PPDA), Sindh Region, Haji Ameer Khan Mehsud, has demanded an immediate increase in the commission of petroleum dealers. He warned that if the commission is not increased, dealers across the country may be forced to shut down petrol pumps.
He stated that PPDA Chairman Abdul Sami Khan had earlier jointly raised this demand with Humayun Khan, Chairman of the All Pakistan Petrol Pump Owners Association (APPPPOA), and now the same demand is being reiterated collectively by PPDA Vice Chairman Anwar Kamal, Tariq Hassan, Raja Waseem, President Karachi Division Saeed Khan, General Secretary Islamabad Chaudhry Faisal, and other dealers nationwide.
Haji Ameer Khan Mehsud urged the government to increase the margin to 8% of the invoice price, arguing that the current profit of Rs. 8 per litre is insufficient to cover rising operational costs. He added that under the current margin, accepting bank credit cards or corporate fuel cards has become financially unfeasible. Dealers are currently paying around 0.75% per Rs. 100 sales to banks and card companies, a concern already highlighted by Chairman Abdul Sami Khan.
He further said that the cost of doing business has risen to unprecedented levels, while the existing profit margin has remained unchanged for a long time, making operations economically unsustainable.
Referring to the situation in Balochistan, he noted that the provincial government has announced petrol at Rs. 280 per litre across the province, even though Iranian petrol is being illegally smuggled and sold at locally determined prices. The influx of smuggled fuel has severely affected the business of legal dealers. He questioned why authorities have failed to curb smuggling.
He also pointed out that the Oil and Gas Regulatory Authority (OGRA) has assured a margin of Rs. 8.64 per litre for petrol pump operators. Both associations are jointly exerting pressure on the government to meet their demands.
Haji Ameer Khan Mehsud concluded that PPDA Chairman Abdul Sami Khan and other senior leaders will meet with stakeholders next week to decide the future course of action.
