Pasban Democratic Party (PDP) has condemned the current profit margins of petrol pump owners, calling the earning of 9.31 rupees per liter a “cruel and unacceptable” injustice to consumers and demanding its immediate reduction to 3 rupees per liter.
PDP’s President of Economic Division and Public Issues, Abubakar Usman, in a statement today urged the Oil and Gas Regulatory Authority (OGRA) and the Ministry of Petroleum to immediately issue a notification for the margin reduction, and warned that the party would approach the Supreme Court if immediate action is not taken in the public interest.
He argued that the current profit is against established business principles, where annual profit is typically two to two and a half percent of the invested capital. Usman said that according to this standard, even the reduced margin of 3 rupees per liter would be considered “quite high”.
Drawing a comparison with the financial sector, the PDP leader pointed out that banks provide loans at about one percent per month, while fuel retailers have turnover several times in the same period. In this context, he suggested that logically their margin should be around half a percent.
Usman highlighted the severe economic hardships, unemployment, and low income faced by the common people. He warned that enriching a specific class by taking extra money from the public’s pocket would exacerbate social problems, including theft, robbery, and civil unrest. He added that the fuel retail business is cash-based where the consumer pays in advance, which minimizes the owners’ personal investment.
A transparent investigation was demanded into which government elements approved such high profits for retailers, and a call was made for strict action against those responsible.
Furthermore, Usman alleged that most petrol pump owners tamper with the meters and demanded mandatory third-party inspections to ensure accuracy. He criticized the “dubious” performance of the Department of Weights and Measures and proposed a new system for regular checks of fuel stations by involving elected representatives at the union council and town levels.
The party finally demanded that OGRA significantly reduce the profit margin of petrol pump operators and take practical steps to provide tangible relief to the public.