Fuel dealers urge public to avoid panic buying as levy talks stall

Petroleum dealers have urged consumers across Pakistan to avoid panic buying, warning that excessive fuel purchases could create

ISLAMABAD: Petroleum dealers have urged consumers across Pakistan to avoid panic buying, warning that excessive fuel purchases could create artificial shortages despite the country’s supply situation remaining under control. The appeal comes as negotiations between the government and Jamaat-i-Islami (JI) over reducing the petroleum levy have yet to produce a breakthrough.

Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Baksh said the government, petroleum industry and consumers had so far maintained a balance between fuel supply and demand. He stressed that unnecessary stockpiling could disrupt this balance and create shortages at petrol stations in certain areas.

Baksh said rumours about a possible fuel shortage in the coming days had raised concerns among consumers. However, he recalled that similar fears emerged during the US invasion of Afghanistan in October 2001, when temporary panic did not lead to a nationwide shortage of petrol and diesel.

He maintained that the current situation remained manageable, with domestic refineries continuing operations and crude oil and petroleum products arriving from Gulf countries, including Saudi Arabia and Oman.

However, the PPDA chairman acknowledged that high fuel prices remained a major concern for consumers. He also warned that the recent closure of the Iran border had put additional pressure on the liquefied petroleum gas (LPG) market.

Petroleum industry estimates suggest that Pakistan’s diesel demand could reach around 750,000 tonnes in November 2026, largely because of seasonal agricultural requirements. Local refineries are expected to meet approximately 70% of domestic diesel demand, although much of the crude oil processed by these facilities is imported.

Petrol consumption is projected to reach nearly 630,000 tonnes during the same month. Domestic production accounts for around 30% of the country’s total petrol requirements, leaving the remaining demand dependent on imports.

Industry sources expect petrol consumption to remain relatively subdued next month due to elevated prices and the seasonal decline in travel activity.

Meanwhile, Jamaat-i-Islami has urged Prime Minister Shehbaz Sharif to announce additional relief for the public during his proposed meeting with party chief Hafiz Naeemur Rehman.

The party has called for the meeting to take place this week to address concerns over the petroleum levy and its impact on household budgets.

JI Deputy Emir Liaqat Baloch made the demand after meeting a government delegation led by Planning Minister Ahsan Iqbal. He said the party remained committed to negotiations but would not give up its right to organise protests if its demands were not addressed.

The government and JI have established a technical committee to examine unresolved issues surrounding the levy. The committee includes State Minister for Finance Bilal Azhar Kayani, JI Islamabad Emir Nasrullah Randhawa and Deputy Secretary Syed Farasat Shah.

The committee is expected to meet within two to three days to review the outstanding matters and explore possible solutions.