Karachi – Petroleum dealers in Pakistan have called for an immediate increase in their sales commission, warning of a nationwide shutdown of fuel stations if the government fails to address rising operational costs that are squeezing profit margins.
Representatives of the Pakistan Petroleum Dealers Association said the current commission structure has become unsustainable, urging authorities to revise margins to 8% of the invoice price. The demand has been jointly raised by dealer bodies across the country.
Haji Ameer Khan Mehsud, president of the association’s Sindh chapter, said dealers are currently earning around Rs8 per litre, which is insufficient to cover escalating expenses such as utilities, wages and regulatory compliance.
He added that increasing reliance on digital payments has further strained margins, as dealers are required to pay bank charges of about 0.75% per transaction. “Under the current structure, digital transactions are becoming financially unviable for many operators,” he said.
The dealers said their demands have been repeatedly presented to authorities but remain unaddressed, even as operating costs have risen sharply in recent years.
The issue has also been compounded by regional challenges, particularly in Balochistan, where the availability of cheaper, smuggled Iranian fuel continues to undermine licensed operators. Dealers said weak enforcement against illegal trade has created an uneven playing field.
The Oil and Gas Regulatory Authority has previously indicated a margin of Rs8.64 per litre for petrol pump operators, but dealers say a broader revision is needed to ensure long-term sustainability.
Industry representatives warned that failure to meet their demands could result in a countrywide shutdown of fuel stations, potentially disrupting supply chains and economic activity.
Dealer associations said consultations among stakeholders are scheduled next week to decide on further action, including the possibility of coordinated closures if negotiations with the government do not yield results.