ISLAMABAD: The All Pakistan Petrol Pump Owners Association (APPPOA) and Pakistan Petroleum Dealers Association (PPDA) on Tuesday called on the government to immediately increase their commission.

They warned that if their commission was not increased in line with recent price hikes, they would be compelled to close fuel outlets across the country.

The associations demanded a margin revision to 8 per cent of the invoice price, arguing that the current fixed profit of Rs8 per litre was inadequate to cover rising operational costs.

Furthermore, they cautioned that existing margins rendered it financially unviable to continue accepting bank credit or corporate fuel cards.

Warn of nationwide shutdown if demand is not met

“Currently, we are paying 0.75pc to banks and card companies on every Rs100 of fuel sold,” explained one petrol pump owner.

Addressing a press conference, PPDA Chairman Abdul Sami Khan pointed out that the cost of doing business had reached unprecedented levels, arguing that operating with current profit margins that had remained unchanged for a long time was no longer economically viable.

He further said that the future course of action would be decided at the association’s meeting with other stakeholders in Karachi next week.

The PPDA chairman said the price hike was implemented after the associations met with the Petroleum Minister Ali Pervaiz Malik, a meeting that reportedly failed to address their primary grievances.

He further said that the Balochistan government had announced that petrol would be available at Rs280 per litre across the province, alleging that Iranian petrol was being illegally imported and that its price was being set locally.

Speaking at the press conference, APPPOA Chairman Humayun Khan said their business was also being severely affected by the influx of smuggled fuel.

He questioned why the authorities had been unable to curb smuggling and why they were not held accountable.

APPPOA Vice-Chairman Nouman Ali Butt said that fuel retailers are currently operating on a margin of less than 2pc, which is unsustainable. He added that the association is demanding a guaranteed minimum of Rs6 per litre margin, with a flexible adjustment mechanism to account for future price increases or decreases.

“The Oil and Gas Regulatory Authority has guaranteed a margin of Rs8.64 per litre for petrol pump operators,” he added. He added that both associations were working together to press the government for their requested margin increase.

After the US-Israel war on Iran commenced, the government initially raised petrol and diesel prices by Rs55 per litre on March 6. On three separate occasions in the following weeks, Prime Minister Shehbaz Sharif said that he had rejected recommendations to increase fuel prices despite a rise in the global market.

However, last week, the government announced an unprecedented increase of 43 per cent and 55pc in the prices of petrol and high-speed diesel, respectively. But just a day later, PM Shehbaz slashed the petroleum levy by Rs80 per litre, bringing petrol prices down to Rs380 per litre.

Published in Dawn, April 8th, 2026