Fuel Dealers Urge Pakistanis to Avoid Panic Buying as Levy Talks Stall

Petroleum dealers across Pakistan have urged consumers to avoid panic buying amid concerns about a possible fuel shortage, saying excessive purchases could create artificial supply disruptions. The appeal comes as negotiations between the government and Jamaat-i-Islami (JI) over reducing the petroleum levy remain unresolved.

Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Baksh said fuel supply and demand had remained balanced, with the government, petroleum industry and consumers playing their respective roles. He warned that unnecessary stockpiling could disturb this balance and cause temporary shortages at petrol stations in some areas.

Baksh said rumours about a potential fuel shortage had raised public concerns but maintained that the current situation remained manageable. He pointed to the continued operation of domestic refineries and the arrival of crude oil and petroleum products from Gulf countries, including Saudi Arabia and Oman.

High fuel prices remain a concern for consumers, while the recent closure of the Iran border has reportedly placed additional pressure on the liquefied petroleum gas (LPG) market. Petroleum industry estimates indicate that Pakistan’s diesel demand could reach around 750,000 tonnes in November 2026, largely due to seasonal agricultural needs.

Local refineries are expected to meet approximately 70% of domestic diesel demand. Petrol consumption is projected to reach nearly 630,000 tonnes during November, with local production accounting for around 30% of the country’s requirements. The remaining petrol demand depends on imports, while elevated prices and seasonal travel patterns are expected to keep consumption relatively subdued.

Meanwhile, Jamaat-i-Islami has urged Prime Minister Shehbaz Sharif to announce further relief for the public during a proposed meeting with party chief Hafiz Naeemur Rehman. The party wants discussions on the petroleum levy and its impact on household budgets to move forward.

JI Deputy Emir Liaqat Baloch raised the demand after meeting a government delegation led by Planning Minister Ahsan Iqbal. He said the party remained willing to negotiate but would retain its right to organise protests if its demands were not addressed.

The government and JI have formed a technical committee to review outstanding issues related to the petroleum levy. The committee includes State Minister for Finance Bilal Azhar Kayani, JI Islamabad Emir Nasrullah Randhawa and Deputy Secretary Syed Farasat Shah. It is expected to meet within two to three days to examine the remaining issues and explore possible solutions.