Pakistan Petroleum Dealers Association (PPDA) has threatened a countrywide shutdown of fuel stations on July 18 in protest against low profit margins. The association has demanded that its profit margins be increased to 6% by the government.
PPDA spokesman Atif Khawaja stated that the government’s complacency towards resolving the issue by June 30 has forced the association to take this drastic step. He stated that the government hasn’t tried to resolve the matter despite talks with the state minister for Petroleum.
Khawaja highlighted that, in December 2021, the previous government increased the profit margin slightly and guaranteed another increase by June 30 that would take the margins to 6 percent. However, the interim government neglected to do so and doesn’t seem eager to follow up on the previous government’s promises.
In his previous announcement, PPDA Chairman Abdul Sami Khan told the media that the insufficient margins are “forcing the dealers to shut down their businesses.”
He highlighted that operational costs have risen significantly and that the lofty fuel prices have also hacked fuel sales, delivering a heavy blow to the industry. Khan added that the protest will continue as long as the government chooses to ignore PPDA’s demands.