The resolution of the critical petroleum dealers’ commission issue has been postponed until the current “war situation” improves, the government today announced, prompting warnings from industry leaders that many fuel stations are on the verge of financial collapse.
Federal Minister for Petroleum and Natural Resources, Ali Pervaiz Malik, conveyed the government”s position during a meeting in Islamabad with a delegation from the Pakistan Petroleum Dealers Association (PPDA), led by its Chairman, Abdul Sami Khan.
The minister assured the delegation, which included senior figures such as Malik Khuda Bakhsh and Raja Waseem, that the matter would be resolved on a priority basis once conditions in the country stabilise. He acknowledged that the government is fully aware of the challenges confronting petroleum dealers.
Ali Pervaiz Malik stated that while the prevailing war-like circumstances are difficult, the government is making all-out efforts to manage the crisis. He confirmed that a summary regarding the commission increase has already been signed by the Ministry of Petroleum and the Chairman of the Federal Board of Revenue (FBR), but its implementation is on hold.
He added that from the Prime Minister to all relevant institutions, there is an awareness of the dealers” demands. However, he urged the association to support the government in dealing with the present challenges, despite an established annual formula for commission increases.
The minister also commended the PPDA for withdrawing a recent strike call in consideration of the national circumstances, a gesture he said he had publicly appreciated on electronic media.
Representing the dealers, PPDA Chairman Abdul Sami Khan affirmed that the strike was averted to prevent further hardship for the government and the public. He cautioned, however, that rising operational costs have made it impossible to continue business under the existing commission structure.
Senior leader Malik Khuda Bakhsh described the current profit margin for dealers as “extremely low,” making business operations unsustainable and pushing several petrol pumps towards closure. He urged the government to implement a previously agreed-upon formula regarding margins.
Bakhsh specifically demanded the immediate payment of a Rs. 1.34 commission increase, which he noted has been linked to the auto-gauge system by the Prime Minister for nearly two years.
Looking ahead, he articulated the association”s demand for the dealers” margin to be fixed at a minimum of 8% of their investment once the situation normalises. He also requested the minister to formally document the minutes of the meeting and to implement a presentation prepared by PPDA member Zafar Elahi.