KP petrol dealers warn of shutdown over commission standoff

Petrol pump owners and dealers in Khyber Pakhtunkhwa have threatened a province-wide shutdown and wheel-jam strike if the government does not increase their sales commission from 6 percent to 8 percent, amid rising fuel prices and mounting operational pressures.

The warning was issued on Saturday during a press conference at the Peshawar Press Club by the Khyber Pakhtunkhwa Petroleum Dealers and Cartage Contractors Association.

Chairman Gul Nawaz Afridi said dealers were facing a financially “troubling situation” despite paying taxes to the Federal Board of Revenue and provincial authorities. He argued that the existing 6 percent margin effectively drops to around 1.5 percent after expenses.

Afridi said dealers had no option but to halt operations if the demand for an increased margin was not accepted, warning that a strike could be extended across the province. He also said the matter had been escalated to the central leadership of the association, which could consider a nationwide shutdown if unresolved.

The association demanded that the dealer margin be raised to 8 percent, stating that increasing petroleum prices had further squeezed profitability. Officials also said dealers are compelled to purchase fuel with advance payments, adding that the effective cost burden has risen by around Rs100 per litre under current conditions.

Afridi accused authorities of failing to take action against illegal “dabba” fuel stations, which he said were expanding across the province while legitimate operators faced regulatory pressure. He termed their existence unfair competition to licensed petrol pump owners.

He further alleged that while district administration officials regularly inspect petrol stations, other officials and individuals were conducting raids and demanding bribes at offices, without action being taken against them.

Association representatives, including President Akhtar Nawaz, Secretary Bezaur Rehman, and Patron-in-Chief Engineer Maqsood Anwar Pervez, said illegal fuel outlets were increasing while enforcement remained weak, worsening conditions for legal businesses.

The association reiterated that any decision taken by the central leadership regarding a shutdown would be fully supported in Khyber Pakhtunkhwa.