ISLAMABAD: The All Pakistan Petrol Pump Owners Association (APPPOA) and the Pakistan Petroleum Dealers Association (PPDA) have urged the government to immediately increase their profit margins.
The groups warned that if margins are not raised in line with the recent massive hike in petroleum prices, they may be forced to shut down fuel stations nationwide.
Both associations demanded a margin revision to 8 percent of the invoice price, arguing that the current fixed profit of PKR 8 per litre is insufficient to cover rising operational costs.
Furthermore, they cautioned that existing margins make it financially impossible to continue accepting bank credit or corporate fuel cards. “Currently, we are paying 0.75 percent to banks and card companies on every PKR 100 of fuel sold,” explained one of the petrol pump owners.
In a press conference, PPDA Chairman Abdul Sami Khan highlighted that the cost of doing business has reached unprecedented level. He argued that operating under profit margins that have remained unrevised since long is no longer economically viable for fuel stations.
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He further said the future course of actions would be decided in the meeting of the association with other stakeholders in Karachi next week.
He said the price hike was implemented just one day after the associations met with the Petroleum Minister, a meeting that reportedly failed to address their primary grievances.
He further said the Balochistan government had notified petrol would be available at PKR 280 per litre across the province, alleging that Iranian petrol was illegally imported and its price was being set locally.
On April 6, the Balochistan government fixed the price of Iranian smuggled petrol at PKR 190 per litre and high speed diesel (HSD) at PKR 220 per litre announced that strict action would be taken against those charging more than this rate.
APPPOA Chairman Humayun Khan said their business was being severely affected by the influx of smuggled fuel. He questioned why the authorities responsible for curbing smuggling had been unable to stop it and asked who was responsible for controlling smuggling at the borders.
Nouman Ali Butt, Vice chairman of the APPPOA said fuel retailers are currently operating on a margin of less than 2 percent is unsustainable, adding that they are demanding a guaranteed minimum margin of PKR 6 per litre, with a flexible adjustment mechanism to account for future price increases or decreases.“The Oil and Gas Regulatory Authority (OGRA) has guaranteed a margin of Rs 8.64 per litre for petrol pump operators,” he added.
Standing on a joint platform, he said both associations are working together to press the government for their requested margin increase.
Copyright Business Recorder, 2026
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