Petrol Pumps May Shut Nationwide After Margin Dispute

The Pakistan Petroleum Dealers Association (PPDA) has announced plans for an indefinite nationwide shutdown of petrol pumps starting March 27 following unsuccessful negotiations with the government regarding an increase in dealer profit margins.

According to the association, fuel stations across the country may begin suspending operations from the night of March 26 if the authorities fail to promptly revise the existing dealer margin structure.

Addressing a press conference on Friday, PPDA representatives Abdul Sami Khan, Amir Khan Mahsud and Tariq Hassan stated that petrol pump operators are no longer able to sustain their businesses under the current margin regime.

Amir Khan Mahsud, president of the Petroleum Dealers Association Sindh, stated that operators cannot continue running businesses that generate losses and warned that petrol pumps would cease operations if the margins remain unchanged.

The dealers further alleged that while retailers continue to face increasing operational costs, the government has allowed Oil Marketing Companies (OMCs) to benefit from recent petroleum price revisions. According to the association, these price adjustments have resulted in billions of rupees in additional profits for OMCs, while petrol pump operators struggle to remain financially viable.

Abdul Sami Khan noted that multiple rounds of discussions had taken place between the association and government authorities; however, no meaningful progress had been achieved, prompting dealers to consider stronger measures.

He also stated that persistent increases in petroleum levies and fuel prices have placed considerable pressure on both consumers and fuel retailers.

The association additionally alleged that certain OMCs have begun imposing limits on fuel deliveries by “capping” supplies of petrol and diesel to dealers. PPDA claims that these restrictions have already caused shortages at several fuel stations, forcing some pumps to halt operations earlier than usual after exhausting available stocks.

Mahsud further cautioned that the government may be considering another significant increase in petroleum prices of up to Rs50 per litre, adding that such a move could further disrupt fuel supply and reinforce the association’s decision to proceed with the nationwide shutdown.