KARACHI: Pakistan Petroleum Dealers Association (PPDA) has highlighted issues over deregulation, bank charges, and dealer commissions, urging immediate government action in the meeting of the Standing Committee on Energy (Petroleum Division) held earlier this week.
Senior Vice Chairman Malik Khuda Baksh, representing PPDA Chairman Abdul Sami Khan, presented key policy recommendations in the meeting while highlighting the financial struggles of petroleum dealers nationwide. He was accompanied by PPDA’s Vice Chairman Raja Waseem, and members Ch Zafar Elahi and Faisal Arif.
Malik Khuda Baksh said among the major issues discussed were the proposed deregulation of the petroleum sector, which PPDA insists not to proceed without their consultation and the heavy burden of credit card charges cutting into dealers' profits. Additionally, the association pushed for a long-pending increase in dealer commissions, citing rising inflation and operational costs, he added.
On deregulation of Petroleum Products, Khuda Baksh briefed the committee that a high-level meeting was held at PSO House in Karachi, which was attended by former Petroleum Minister Musadik Malik, OGRA Chairman Masroor Khan, Director General (Oil), MD PSO, and a PPDA delegation led by Chairman Abdul Sami Khan. Deregulation of the petroleum industry was discussed in detail, and assurances were given that no decision would be made without the consultation of the PPDA and its chairman.
He requested the Committee to defer the deregulation matter until the next session due to Abdul Sami Khan’s illness. He assured that PPDA would submit its written recommendations before the next meeting. The Committee agreed and instructed PPDA to submit its proposals in writing.
Khuda Baksh also raised concerns over excessive bank charges that are severely impacting fuel retailers' profits and proposed two solutions: either the State Bank should intervene to reduce transaction fees, or dealers should be allowed to pass these charges to customers, as is common internationally. The committee agreed to revisit the issue in the next session after reviewing global practices.
On the issue of dealer commissions, he pushed for a long-pending increase, citing rising inflation. While OGRA had approved a Rs. 1.40 per liter hike eight months ago, it remains unimplemented. The association demanded a fresh review for the commission based on current economic conditions, which the committee and Petroleum Minister agreed to consider.
PPDA Vice Chairman Raja Waseem also briefed officials on the ongoing problem of fuel smuggling, which continues to hurt legitimate businesses. Authorities acknowledged the issue but noted a recent decline due to government crackdowns.
Khuda Baksh informed that the meeting concluded with key decisions: the deregulation of petroleum products will be discussed in the next session after the PPDA submits written recommendations, while bank charges and dealer commissions will also be revisited. With profit margins shrinking and policies delayed, petroleum dealers are now waiting for concrete action to safeguard their businesses.
Copyright Business Recorder, 2025
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