Petroleum dealers have issued a 48-hour ultimatum to the government, demanding an increase in their profit margins. They warn that if the Petroleum Minister fails to respond within two days, a major decision regarding the future of petrol pumps across the country may follow.
The situation is now seen as a developing standoff between dealers and authorities, with potential nationwide impact on fuel supply operations, according to media reports.
Chief Advisor to Petroleum Dealers, Malik Khuda Bakhsh, stated that it is impossible to operate petrol pumps on the current commission, as dealers are facing severe financial pressure.
In this regard, petroleum dealers will send a final letter to the Petroleum Minister regarding the commission today. If the government does not take immediate action, the Dealers Association committee will announce its next course of action.
He further said that diesel sales declined by around 30 per cent in May, and in some areas, diesel sales have almost come to a halt, while smuggled fuel has started to dominate the market.
Five refineries have formally informed the government of their concerns over the increasing smuggling of petroleum products. They have also warned that storage capacity is running out due to low diesel sales. During recent tensions in the Middle East, the government sought cooperation from dealers; however, dealers are now facing financial difficulties.
According to the dealers, their working capital is rapidly depleting due to the prevailing situation. They have urged the Petroleum Minister to visit Karachi to review the ground realities and assess the losses faced by dealers. If there is no response within two days, Chairman Abdul Sami Khan is expected to make a final announcement.
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