Petroleum products supply in Pakistan has come under serious pressure as fuel dealers warn of worsening shortages across the country. Despite a recent and steep increase in fuel prices, many petrol pumps are still struggling to obtain adequate supplies of petrol and diesel.
The Pakistan Petroleum Dealers Association (PPDA) has raised alarm over the situation, stating that oil marketing companies have not fully restored supply even after the government increased fuel prices. As a result, several fuel stations across Pakistan are reportedly facing shortages, leaving motorists frustrated and dealers financially strained.
According to the association, the ongoing disruption in the petroleum products supply in Pakistan could trigger a wider economic and logistical challenge if urgent corrective measures are not taken.
Dealers Accuse Oil Marketing Companies of Supply Cuts
Fuel dealers claim that oil marketing companies recently imposed a quota system that drastically reduced fuel deliveries. Under this system, petrol pumps were reportedly receiving only around 50% of their usual fuel supply, and in some cases even less.
The reduced deliveries have made it increasingly difficult for pump owners to meet daily consumer demand. With limited fuel arriving at stations, queues have started to form in certain areas, raising concerns about a potential nationwide supply crunch.
Dealers argue that if the petroleum products supply in Pakistan is not normalized soon, the shortage could spread further, affecting transportation, logistics, and business operations.
Rising Fuel Prices Add Financial Burden on Dealers
The crisis has been compounded by a sudden surge in fuel prices. Petrol and diesel prices were reportedly increased by Rs. 55 per litre, creating a significant financial burden for petrol pump owners.
Because dealers must purchase fuel inventory in advance, the price hike has forced them to inject much more capital into their businesses.
Industry estimates suggest that:
• Petrol pump owners now need to pay approximately Rs. 30 million extra per pump to purchase petrol and diesel inventory.
• Across the country, petroleum dealers collectively face billions of rupees in additional financial pressure.
For small and medium-sized pump operators, this sudden capital requirement has made it extremely difficult to continue operations smoothly.
PPDA Calls for Audit and Investigation
Amid the worsening situation, the Pakistan Petroleum Dealers Association has demanded a comprehensive audit of oil marketing companies.
According to the association, authorities should investigate whether supply shortages are linked to hoarding, reduced distribution, or speculative practices aimed at maximizing profits after the price increase.
Dealers are urging regulators to determine:
• Whether oil marketing companies deliberately reduced supply.
• If any stockpiling occurred ahead of the price hike.
• How much profit may have been generated through supply manipulation.
Such an investigation, PPDA argues, would help restore transparency and stabilize the petroleum products supply in Pakistan.
Dealers Say Their Margins Remain Unchanged
Another major concern highlighted by the association is the unchanged profit margin for petroleum dealers.
While the government reportedly increased its revenue through higher fuel levies, dealers say their own margins already approved months earlier have not been implemented.
The association had also previously requested the government not to increase the petroleum levy at this stage, warning that it would further strain the market.
However, according to PPDA, the policy changes have disproportionately affected petrol pump operators who must now manage higher costs, delayed supplies, and customer dissatisfaction.
Rising Tensions at Petrol Pumps
The ongoing fuel shortage has also raised safety concerns.
Dealers warn that tensions at petrol stations could escalate if supply disruptions continue. In fact, a violent incident was recently reported in Punjab where a petrol pump employee was killed during a dispute.
Industry representatives fear that prolonged disruption in the petroleum products supply in Pakistan could lead to more conflicts between customers and pump staff, especially in areas where fuel availability becomes limited.
What Needs to Happen Next?
The Pakistan Petroleum Dealers Association is urging the government to take immediate steps to stabilize the fuel market. Key demands include:
• Restoring normal fuel supply from oil marketing companies
• Conducting an audit of supply chains
• Investigating potential hoarding practices
• Implementing approved dealer margins
• Reviewing policies affecting petroleum pricing and distribution
Without timely intervention, the current situation could escalate into a broader fuel supply crisis in Pakistan, affecting transportation networks, industrial activity, and everyday consumers.
For now, the stability of the petroleum products supply in Pakistan remains a critical issue that policymakers must address swiftly.