THE prevailing discount model in the lubricants sector that is being followed by the Pakistan State Oil (PSO) at its retail outlets needs attention. The PSO has mandated dealers to lift a certain quantity of lubricants with every load of petrol and diesel. Consequently, these lubricants are being sold in the market at significantly discounted rates that often range from Rs200 to Rs250.

This practice appears to be driven by dealers’ efforts to dispose of the mandated stock quickly, potentially to offset losses. However, it raises serious concerns about two key areas. The heavy discounting on genuine lubricants is distorting the market and putting rather undue pressure on other lubricant brands, especially those maintaining standard pricing and quality.

Besides, there is growing concern that non-PSO dealers may be compensating for these discounts by delivering less-than-standard quantity and quality of petrol and diesel to customers, leading to possible consumer dissatisfaction and ethical implications.

This situation, if left unaddressed, may impact fair market competition, and will harm consumer trust in fuel retailing practices. The issue merits a closer review, and further broad discussion to find a balanced solution that may protect both market integrity and consumer interests.

Naveed Ahmed
Karachi

Published in Dawn, July 9th, 2025