Petroleum dealers in Pakistan are urging the government to fulfill its promise to increase their sales margins by Rs1.40 to Rs2.20 per litre on petrol and diesel. This adjustment, which was agreed upon last year, has yet to be implemented.
The issue was discussed in a meeting of the National Assembly’s Standing Committee on Petroleum, chaired by Syed Mustafa Shah. The committee has asked the Petroleum Division, the Oil and Gas Regulatory Authority (OGRA), and the Pakistan Petroleum Dealers Association (PPDA) to provide detailed reports and find a way forward.
During the meeting, PPDA representatives expressed their frustration with the delay. They reminded the committee that the Economic Coordination Committee (ECC) had approved a gradual increase in sales margins in September 2023.
The plan was to raise margins by Rs1.64 per litre for dealers and Rs1.87 per litre for oil marketing companies (OMCs), based on the operating costs of the state-owned Pakistan State Oil (PSO).
The PPDA also pointed out that the government had promised to review the margins annually, in line with inflation. Earlier this year, dealers proposed an increase of Rs2.20 per litre, but OGRA suggested a more modest rise of Rs1.40, bringing the dealers’ margin to Rs7.87 per litre and OMCs’ margin to Rs8.64 per litre. However, this has still not been officially announced.
The committee also raised the possibility of converting CNG stations into petrol pumps. Petroleum Minister Ali Pervaiz Malik explained that such conversions could be considered on a case-by-case basis under the existing policy, but there would be no immediate changes to the policy. The committee decided to delay further discussion on this issue until its next meeting.
Minister Malik also addressed concerns over fuel quality, noting challenges with the Goods and Services Tax (GST) and LPG margins. He assured the committee that OGRA would handle these matters, and they would be addressed in the upcoming budget. OGRA Chairman Masroor Khan added that petroleum prices are reviewed every 15 days with government approval, and about 50% of the country’s petroleum demand is met by PSO.
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