Petroleum dealers give government 48-hour deadline on commission increase

The Pakistan Petroleum Dealers Association (PPDA) has given the government 48 hours to respond to their demand for an increase in dealer commissions, warning that they may announce further action if no decision is made.

The association said it will send a final letter to the petroleum minister on the issue and expects a response within two days. PPDA Chief Adviser Malik Khuda Bakhsh said operating fuel stations under the current commission structure has become financially unsustainable, adding that dealers are facing increasing financial pressure.

He said the association's 30-member committee would decide its future course of action if the government fails to address the issue. PPDA Chairman Abdul Sami Khan is expected to announce the association's next steps after the deadline expires.

Dealers also expressed concern over a decline in diesel sales, attributing the trend to the growing presence of smuggled fuel in the market.

According to the association, five domestic oil refineries have formally informed the government about the impact of fuel smuggling on the petroleum sector.

The refineries have warned that weaker diesel sales are pushing storage facilities closer to capacity limits, creating operational challenges for the industry.

The PPDA said petroleum dealers had cooperated with the government to ensure uninterrupted fuel supplies during periods of heightened tensions in the Middle East, but are now facing shrinking working capital and increasing financial difficulties.

The association has urged the petroleum minister to visit Karachi to assess the situation and review the financial challenges being faced by fuel station operators.

Petroleum dealers maintain that without immediate relief through higher commissions, continued operations may become increasingly difficult for many fuel stations across the country.