Rawalpindi:
Representatives of the Pakistan oil distributors association have rejected the proposed deregulation of the fuel market, warning that such movement would lead to a strong increase in gasoline prices from Karachi to the northern regions.
They suggested that instead of deregulation, the government should eliminate oil tax, which could reduce fuel prices to RS60 per liter.
During a press conference, the coordinator of the president of the Association of Petroleum Distributors, Raja Waseem, declared that they were open to negotiations with the Government, but have not yet received any response to their concerns.
“The whole problem revolves around the margin of inner freight equalization, and oil marketing companies are increasing their profits by directly operating fuel stations,” he said.
Waseem emphasized that past attempts of deregulation had faced resistance, particularly Khyber Pakhtunkhwa, and warned that it could lead to cartelization, as seen in cement and sugar industries.
In addition, he pointed out that Iranian smuggling fuel is interrupting the market, with an adulterated and mixed fuel that is sold with greater profits, which makes legal companies difficult to survive.
