PPDA opposes installation of auto gauging system by Feb 12

KARACHI: The federal government’s requirement to install the Auto Gauging System (ATG) by February 12 has raised concerns among petroleum dealers, who have warned that petrol pumps across the country could become illegal in phases after the expiry of mandatory K-Forms, as their renewal has been linked to the installation of the ATG.

The issue was highlighted during an emergency press conference held on Thursday at the residence of PPDA Chairman Abdul Sami Khan. Vice Chairman Tariq Hassan, senior member Anwar Raja, Malik Khuda Baksh, and petroleum dealers from across the country were also present on the occasion.

During the press conference, PPDA representatives revealed that government of Pakistan has kinked the renewal of the K-Forms of all petrol pumps with the installation of Auto Gauging System (ATG), which is not the responsibility of the dealers and not yet been implemented across the sector by the Oil Marketing Companies (OMCs). “We warmly welcome the initiative to implement the ATG for sharing the petroleum stock position of petrol pumps and believed that this system is crucial for enhancing transparency and efficiency in our operations”, he added.

However, full digitalization of around 14,000 petrol pumps would require an estimated investment of Rs40 billion nationwide. The cost of installing the system for a single tank is estimated at Rs4 million to Rs5 million, but not the responsibility of the dealers. He added that some oil marketing companies have already invested billions of rupees to introduce auto-gauge digital systems at petrol pumps.

Sami Khan warned that if the government initiates action against petrol pumps over the issue, the dealers will respond strongly across the country.

Tariq Hasan vice chairman, PPDA represent only registered and compliant petrol pumps across the nation. However, they have concerns regarding the significant investment required for this system as dealers don’t have sufficient capital to invest more on the pumps. “We urge the respective Oil Marketing Companies (OMCs) to take the lead in facilitating this capital expenditure (CAPEX) investment and its installation”, he added.

He said that ATG installation by the OMCs will alleviate the financial burden on dealers, as the current CAPEX investments are primarily borne by the OMCs. He categorically said that petrol pump dealers cannot bear the cost of the AGT system otherwise; they will be compelled to close the pumps. He also complained that the dealer margin approved by the Economic Coordination Committee (ECC) has not yet been provided to petrol pump owners.

For the past two years, there has been no improvement in dealers’ margins, despite the Ministry of Petroleum approving an increase, which was also endorsed by the ECC and the Prime Minister. However, despite the approval, dealers’ margin has not been given, he mentioned. “With the current inflation and the rising costs of staffing, inputs, electricity, and compliance requirements, the existing margins are insufficient to meet our break-even point”, Tariq Hassan said.

He urged the relevant authorities to address these pressing issues to ensure the sustainability of petrol dealers across the country. Criticizing the government’s policy on electric vehicle infrastructure, Tariq said imposing a mandatory requirement for EV chargers at petrol pumps across the country is not a practical step.

Copyright Business Recorder, 2026