Petunias are made to dry out. Wilting despite moist soil = classic overwatering. Rotting roots can't absorb water, so tops wilt while soil is wet.
Stop watering. Only water when soil is DRY. Repeat: only when dry. This is the #1 petunia killer, perfectly described in your question.
Safer's soap causing mildew confirms excessive moisture. Let pots dry completely between waterings. Petunias recover fast from drought; they rarely recover from rot.
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