Naveed Siddiqui
ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) has declared a nationwide shutdown of petrol pumps. The decision comes as a response to the surging inflation rate and mounting financial challenges faced by dealers in the petroleum industry.
During a press conference held in Islamabad Thursday, representatives from the Pakistan Petroleum Dealers Association expressed their deep concern over the unprecedented increase in the Consumer Price Index (CPI). According to estimates, the inflation rate has soared to an alarming 38 percent, severely impacting the livelihoods of petrol pump dealers across the country.
Key factors contributing to this financial crisis for dealers include the escalating costs of utilities, labor, and the KIBOR rate. The margin for Dealer’s Commission, which is a crucial source of income for these dealers, has been eroded to the point of becoming negative.
Addressing the media, Abdul Sami Khan, the Chairperson of the Pakistan Petroleum Dealers Association, lamented the lack of attention from the government towards their plight. He highlighted that the association represents the largest group of dealers in Pakistan, with over 12,000 outlets nationwide, yet they have been completely disregarded.
“We have been promised fair treatment and reasonable profits, but the government has failed to fulfill its commitments,” said Khan.
The association claims that since 1999, they were initially assured a 5 percent profit margin, which gradually decreased to 4 percent by 2004. Recently, the government granted them a meager Rs. 6 per liter profit, equating to just 2.40 percent, a figure that has left them unsatisfied and struggling to cover their operational expenses.
Furthermore, the pressing issue of smuggled Iranian petrol and diesel has exacerbated their financial woes. Due to uncontrolled transmission, the association reports a staggering 30 percent decline in sales.
Despite appeals made to the Petroleum Minister, Mr. Masood Malik, and extensive coverage in major newspapers, no significant action has been taken by the government to address their concerns.
In light of the unyielding circumstances, the Pakistan Petroleum Dealers Association has announced a complete shutdown of all petrol pumps across the country. This nationwide closure is set to commence on Saturday, 22nd July 2023, starting at 6:00 AM.
As the association takes this drastic step, the government is urged to take immediate notice of the situation and engage in constructive dialogue with the dealers to find a viable solution to the crisis.
