Petroleum dealers issue 48-hour ultimatum

KARACHI: The petroleum dealers have given the government a 48-hour ultimatum over their demand for an increase in commission, warning that a major decision regarding the future of petrol pumps across the country will be announced if the Petroleum Ministry fails to respond within two days. The dealers said that operations at petrol pumps under the current commission structure had become financially unviable, adding that they were under severe economic pressure. According to the petroleum Chief Advisor to the Petroleum Dealers Association (PPDA), Malik Khuda Bakhsh, the situation has reached a point where continuing business operations has become extremely difficult. READ MORE: Petroleum dealers demand hike in profit margins He said that a formal and final letter regarding the commission issue would be sent to the Petroleum Minister, outlining the dealers’ demands and financial concerns. The association further warned the government that if it failed to take immediate notice, its 30-member core committee would take a decision, and Chairman Abdul Sammi Khan would announce the next course of action. He said that the options under consideration may include nationwide protest measures or other strong steps. The dealers also claimed that the sale of diesel in the country had nearly collapsed, while smuggled petroleum products had been dominating the market, further hurting legal operators. Meanwhile, five major refineries have formally alerted the government over rising concerns of petroleum smuggling, stating that it poses a serious threat to the domestic refining industry. They also warned that declining diesel sales had been causing storage capacity issues. Bakhsh said that during the recent tension in the Middle East, the government had sought their cooperation, but they were now facing severe financial strain themselves. They added that war-related uncertainty and rising economic pressure had rapidly depleted working capital in the sector. The PPDA has urged the Petroleum Minister to visit Karachi and assess ground realities and the financial losses being suffered by the dealers. Copyright Business Recorder, 2026

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