Karachi – The Pakistan Petroleum Dealers Association (PPDA) has demanded an increase in their profit margins to 8% per litre of petroleum products following last week’s sharp Rs55 per litre hike in petrol and diesel prices. The association has given the government a March 26, 2026 deadline to address their request.
PPDA Sets Deadline for Government Response
At a press conference held at the Karachi Press Club, PPDA Chairman Abdul Sami Khan said dealers would review their options after Eid-ul-Fitr if the government continues to maintain margins at the current level of 2.59% (around Rs8 per litre).
Senior Vice Chairman Malik Khuda Baksh clarified that while no strike has been called for March 27, the situation will be re-evaluated if their demands are not met by the deadline.
Margin Pressure After Price Hike
Before the recent price increase, petroleum dealer margins stood at 3.60% (Rs8 per litre). The government’s recent increase raised petrol prices to Rs321.17 per litre and diesel prices to Rs335.86 per litre on March 6, 2026, significantly raising the working capital requirements for petrol pump operators.
The PPDA leadership emphasized that running petrol pumps at current low margins is no longer sustainable, and an upward revision is necessary to maintain profitability.
Potential Impact of Margin Increase
If the government accepts the dealers’ demand to raise margins to 8% per litre, profits would rise by Rs17 per litre, bringing total margins to Rs25 per litre from the current Rs8 per litre.
Dealers stressed that the revision is critical to continue operating efficiently and meeting rising procurement costs from oil marketing companies (OMCs).