KARACHI: Petroleum dealers on Tuesday threatened to close down fuel stations across the country from November 5 if the government did not increase petrol commission to six per cent.

Addressing a press conference at the Karachi Press Club on Tuesday, Abdul Sami Khan and Malik Khuda Bukhsh, senior office-bearers of the Pakistan Petroleum Dealers Association (PPDA), said the government had promised to raise petroleum commission to 5pc from the current 2.5pc per litre of petrol.

However, so far no decision has been taken on the issue by the government in the last two years.

The PPDA representatives said dealers do not want any increase in the prices of petroleum products on the basis of any hike in petroleum commission. PPDA has been demanding an increase in margin with the help of adjustment in petroleum levy and sales tax.

They added operating fuel stations had become difficult now after manifold increase in cost of doing business due to rising power tariff and labour charges.

They said petroleum dealers cannot operate on Rs2 per litre commission on diesel and petrol as the actual commission comes to 50 paisa per litre after paying heavy power bills and other running expenses.

PPDA said the dealers have no choice but to close down the pumps in view of skyrocketing operating cost and very low profit margins.

Published in Dawn, November 3rd, 2021