ISLAMABAD: The Pakistan Petroleum Dealers Association (PPDA) said on Monday it would launch a countrywide strike against the government’s decision to deregulate oil prices, warning that the move would trigger an increase in smuggling, inflation and cartels dictating oil prices.
Pakistan’s Petroleum Minister Musadik Malik said last week the government was planning to introduce a deregulation policy allowing oil marketing companies (OMCs) to sell fuel at competitive rates to increase their market share. Under the policy, OMCs would be allowed to set their prices and sell petrol and diesel below the government’s announced rates.
The PPDA, which represents fuel station owners and petroleum dealers across Pakistan and advocates for fuel retailers’ interests in pricing, government policies and taxation, says it was not consulted on the government’s deregulation plans.
“The government did not consult us, we oppose this move of theirs,” Abdul Sami Khan, PPDA chairman, told Arab News over the phone on Monday. “Our central organization will hold a meeting on this, following which we will announce a date for our strike if this decision is not reversed.”
In a press release on Sunday, the union warned that deregulation of oil prices would lead to an increase in smuggling of oil from Iran and the formation of cartels, “where only two or three companies will dominate, leading to unfair pricing practices.”
The PPDA also warned that deregulating oil prices would cause inflation to surge, adversely affecting consumers.
“The PPDA calls for an immediate review of this decision and urges the government to engage with us to address these pressing concerns,” it said. “We stand ready to discuss and collaborate on a more equitable and transparent approach to the oil pricing system.”
