The Pakistan Petroleum Distributors Association (APPDA) has supported a national strike on March 4, while the Khyber Pakhtunkhwa Petroleum Distaders (KPPDCA) association threatens a strike of the entire province if the desertulation of the oil proposed by the Government is not reversed.
Last week, the Minister of Petroleum, Musadik Malik, revealed plans to implement a deregulation policy that would allow oil marketing companies (WTO) to establish their own fuel prices, which allows them to sell at rates below the Fixed government prices in an attempt to capture a greater market share.
However, this proposal has increased the fear of possible interruptions in the market, particularly that affect local refineries and oil dealers.
In Sindh, the members of the APPDA, including the member of the Central Executive Committee Raza Abbas and the key leader Nauman Butt, announced the strike during a press conference. Abbas declared that the strike, which will begin on March 4, would continue indefinitely until the government addresses the demands of the dealers.
He expressed concern that deregulation could result in the cartelization of some powerful WTOs, interrupting the entire oil market. Abbas also accused the oil ministry of protecting the interests of a few selected companies, which potentially puts the entire sector under the control of some players.
In response to the call of PPDA, all gasoline pumps in Karachi and in every Sindh will be closed on March 4.
Butt criticized the Ministry for not consulting 15,000 oil dealers throughout the country before announcing deregulation plans. He added that the concessionaires still do not realize the details of the proposed deregulation formula.
He also warned that deregulation could make it impossible to maintain the availability of standard oil products.
He also questioned the viability of the proposal of the Petroleum Minister that refineries use 5%ethanol, noting that local refineries lack the ability to produce high quality oil products with ethanol. He concluded by stating that consumers would support the worst part of the consequences of deregulation.
Meanwhile, Gul Nawaz Afridi of Khyber-Pakhtunkhwa, president of KPPDCA, addressed the concerns of the province’s dealers at a press conference, stating that deregulation could lead to the emergence of an oil mafia and market manipulation.
He warned that policy would grant power without control of WTOs, potentially increasing the smuggling and monopming of oil derived products.
Aphridi emphasized that the country’s economy depends largely on the taxes raised in the oil industry and that any poor management in the sector could have serious consequences for Pakistan’s economy.
He also raised concerns about the lack of transparency that could result from deregulation, further destabilizing the sector. He announced that if their demands are not met on March 3, oil dealers in KP also smell on strike indefinitely.
