Petrol pump owners ask Petroleum Minister to review daily fuel prices, citing losses on stock

Petrol pump owners want the government to stop changing fuel prices every day. The All Pakistan Petrol Pump Owners Association has written to Petroleum Minister Ali Pervaiz Malik asking for a meeting and a review of the daily pricing mechanism, which it says is costing dealers money, ProPakistani reported on Friday.

What the dealers say

The association's letter makes four complaints about prices that move almost every day:

• Losses on stock: a pump buys fuel at one price and may sell it at another a day later. When the price falls, the fuel in its tanks loses value.
• Cash flow: dealers say they cannot plan purchases when the price of the next load is unknown.
• Inventory: frequent changes make it harder to decide how much stock to hold.
• No say: retailers are not consulted before prices change.

It is asking for "a practical and transparent system for determining petroleum prices", consultation with retailers before any change, and a mechanism that protects dealers' interests while keeping supply to customers uninterrupted.

How often prices are moving

Our petrol price page tracks PSO's ex-depot price in Karachi, which carries its own "effective from" date and now changes most days. On Friday 23 October it was Rs 377.71 a litre, down Rs 1.60 from Thursday's Rs 379.31. Diesel moved the other way, to Rs 391.75 from Rs 390.11 (diesel price page).

For a pump holding 20,000 litres of petrol, a Rs 1.60 overnight cut means the stock in its tanks is worth Rs 32,000 less than it paid. On a day the price rises, the same stock gains. Dealers' complaint is that the swings make their margins unpredictable, not that every change goes against them.

What it means for you

For drivers, daily prices mean the rate at the pump can differ from yesterday's by a rupee or two either way. Before filling up, check the day's price, and work out what your monthly driving costs with our fuel cost calculator. The minister has not yet responded to the letter.