KARACHI:
The Pakistan Petroleum Distributors Association (PPDA) has warned that petrol pumps across the country will close indefinitely from March 27 if the government fails to increase dealers’ margin to 8 per cent.
The association made the announcement on Friday during an emergency press conference at the Karachi Press Club. PPDA Chairman Abdul Sami Khan said oil traders would resist if their demands were not met.
“The government promised us an eight per cent margin, but due to rising prices of petroleum products, our margin has now fallen to 2.68 per cent, making it impossible for us to continue the business,” he said.
He urged the government to fulfill its commitment, warning that distributors would close gasoline pumps across the country if the demand was not accepted.
PPDA vice-chairman Tariq Hassan also expressed concern over the possibility of another fuel price hike this week, stating that petrol prices could rise by Rs 50 to Rs 60 per litre.
Another official, Waseem Qadri, said if the margin was fixed at eight per cent, dealers’ profits would increase from around Rs 8 per liter to about Rs 25 per litre.
Oil traders also alleged that Iranian diesel and gasoline were still widely sold in the country, affecting the local fuel market.
Last week, on March 4, the Pakistan Petrol Pump Owners Association warned of a possible shortage of petroleum products in the country and called for immediate government intervention.
In the letter to the Prime Minister, the association alleged that oil marketing companies had imposed a quota system and were not supplying petrol pumps with the required amount of fuel.
He said despite placing orders, supplies were delayed and tankers had to wait for hours. The association warned that creating an artificial shortage could create panic among the public.
