Resolution to petroleum dealers’ commission issue after war situation stabilises: Minister

KARACHI: Federal Minister for Petroleum and Natural Resources, Ali Pervaiz Malik, has said that the long-standing issue of petroleum dealers’ commission will be resolved on a priority basis once the prevailing war-like situation improves, assuring that the government is fully aware of the challenges faced by dealers across the country.

The minister made these remarks during a meeting in Islamabad with a delegation of the Pakistan Petroleum Dealers Association (PPDA), led by its Chairman Abdul Sami Khan. The delegation included senior members such as Malik Khuda Bakhsh, Raja Waseem, Babar Chaudhry, Ashraf Meher, Chaudhry Faisal Arif, Chaudhry Zafar Elahi, among others.

Ali Pervaiz Malik said the government, in coordination with stakeholders, is making all-out efforts to manage the current crisis triggered by regional tensions, while continuing to work towards providing relief to the public. He acknowledged that the existing circumstances have created difficulties for all sectors, including petroleum dealers, and assured that their concerns would be addressed once stability returns.

The minister noted that oil marketing companies are already aware of the commission issue, adding that a summary regarding the matter has been signed by the Ministry of Petroleum and the Chairman of the Federal Board of Revenue (FBR). However, he said implementation has been delayed due to the ongoing challenging situation.

He further stated that the issue has been brought to the attention of the Prime Minister, the cabinet, and relevant institutions, and reiterated that while an annual formula exists for revising dealer commissions, the current national circumstances require collective support.

Senior leader Malik Khuda Bakhsh highlighted that the current margin for petroleum dealers is extremely low, warning that several petrol pumps are on the verge of closure. He urged the government to implement the previously agreed formula for margin revision without delay.

He also pointed out that a proposed increase of Rs1.34 in commission over the past two years had been linked to the installation of an auto-gauge system by the Prime Minister, and demanded that the increase be granted independently.

The PPDA further demanded that, once conditions stabilise, dealer margins should be fixed at a minimum of eight percent in line with their investment levels.

Malik Khuda Bakhsh also called for formal documentation of the meeting’s proceedings and urged the government to consider the recommendations presented by PPDA member Chaudhry Zafar Elahi, who briefed the minister on the issue during the session.