Diesel sales have almost collapsed across the country, while smuggled fuel is increasingly dominating the market
KARACHI: Petroleum dealers have given the government a 48 hour deadline to address their demand for an increase in dealer commission.
During a crucial meeting held under the chairmanship of PPDA Chairman Abdul Sami Khan, it was decided to immediately send a letter to Federal Minister for Petroleum Ali Pervaiz Malik to visit Karachi to review the ground realities and assess the losses faced by dealers. The dealers warned that if the minister fails to respond within two days, a major decision regarding the future of petrol pumps across the country could be announced.
PPDA Chief Adviser Malik Khuda Bakhsh stated that operating petrol pumps on the existing commission structure has become impossible, and dealers are facing severe financial difficulties. He said that petroleum dealers would send a final letter regarding the commission issue to the Petroleum Minister.
Furthermore during the last changes in the petroleum prices and diesel prices have been reduced by Rs22 per liter each. Prime Minister Shehbaz Sharif said the decision reflects the government’s commitment to pass on relief to the public whenever fiscal space becomes available.
Earlier, federal government has slashed the fuel prices by Rs5 per liter. According to Petroleum Division notification, the price of petrol has been reduced by Rs 5 per liter, bringing the new rate to Rs 409.78 per liter.
Petroleum dealers have called on the government to increase their commission by 8 percent per liter, citing growing operational expenses and reduced profitability but dealer commissions declined by nearly 30 percent in May, placing additional financial strain on fuel retailers.
Malik Khuda Bakhsh revealed that diesel sales have almost collapsed across the country, while smuggled fuel is increasingly dominating the market. He said that five oil refineries have formally informed the government about their concerns regarding the rise in petroleum product smuggling. The refineries have also warned that declining diesel sales are causing storage facilities to reach capacity limits.
He noted that during the Middle East tensions, the government had sought cooperation from petroleum dealers. Due to the prevailing war like situation, business capital is rapidly being depleted. He urged the Petroleum Minister to visit Karachi and assess the ground realities and financial losses being suffered by petroleum dealers.
The government has been changing petrol prices every Friday night since the US-Israeli war on Iran started on February 28.
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