The Pakistan Petroleum Dealers Association (PPDA) on Thursday warned that operating licences (Form K) of petrol pumps across the country are set to expire on February 12, raising concerns over a possible disruption in fuel supply if the matter is not resolved in time.
The warning comes after the government made it mandatory for fuel stations to install an auto-gauging digital system as a precondition for renewing Form K. Authorities have cautioned that licences of outlets failing to comply will not be renewed.
Addressing a press conference, PPDA Chairperson Abdul Sami Khan said thousands of licences were at risk because the government had not properly implemented the auto-gauging digitalisation framework. He said linking Form K renewals to digitalisation would require an estimated Rs. 40 billion investment to upgrade petrol pumps nationwide.
According to Khan, oil marketing companies would have to invest billions of rupees to install the system across their outlets, which he described as financially unfeasible under the current business structure.
He warned that dealers would strongly resist any action taken against fuel stations. “If any coercive steps are taken, dealers across the country will respond forcefully,” he said, while also demanding an audit of oil companies to determine how much oil has been imported and sold.
Khan further pointed out that the dealer margin approved by the Economic Coordination Committee (ECC) has yet to be implemented, adding to the financial strain on petrol pump operators.
Criticising government policy, he also opposed the mandatory installation of electric vehicle (EV) charging facilities at petrol pumps, calling it unjustified given that only two to three percent of vehicles in Pakistan are electric.
“Nearly 60 percent of Pakistan’s population lives in rural areas. Who will use EV charging facilities at petrol pumps in those regions?” he asked.
The PPDA urged the government to review its digitalisation and compliance requirements urgently to prevent a potential nationwide fuel supply crisis.
