KARACHI – Mian Nasser Hyatt Maggo, President FPCCI, has urged the government to announce a protective mechanism for existing & future investments into the petroleum downstream sector. Fuel supply in the country is already under enough strain and will remain so in the foreseeable future; on the back of consistently rising petrol prices and uncertainty in rupee-dollar parity, he added.
FPCCI Chief maintained that the cost of doing business for petroleum dealers has increased substantively due to exorbitant rise in electricity prices; the minimum wage of Rs. 25,000; decreasing demand due to hyperinflation in fuel prices and dwindling margins. He added that the sector has become unprofitable and expressed his dire concern that if the sector becomes unprofitable in the long-term as well, then there will be no more investments into the sector; and, that will be a nightmarish scenario for the fuel supply security of the country.
Mian Nasser Hyatt Maggo explained that the margins on petrol and diesel are Rs. 3.91 & Rs. 3.30 per litre respectively; and, Withholding Tax of 12% on the commission margin, Oil Marketing Company (OMC)’ licensing fee of 20 paisas per litre and some other related factors further wipe out another rupee out of it approximately.
Mr. Samir Gulzar, Convener FPCCI’s Central Standing Committee on Petroleum Products & Dealers, urged the authorities to immediately start a consultative process with the stakeholders from the platform of FPCCI to resolve the impending crisis that may hit the fuel supplies of the country at the retail level. Petroleum Dealers want to continue to serve the downstream sector of the country and only aiming to keep their businesses profitable in a fair and sustainable manner, he added.
