Dealers announce nationwide closure of petrol pumps from July 22

Association says pumps will be closed for an indefinite period due to non-increase in margins of dealers

KARACHI:

The Pakistan Petroleum Dealers Association (PPDA) has announced the nationwide closure of petrol stations for an indefinite period starting from July 22 as a result of their dissatisfaction with the lack of an increase in dealers' margins.

During a press conference at the Karachi Press Club on Thursday, Abdul Sami Khan, spokesperson for the association, said that due to the prolonged strike, petrol pumps will only be operational for two days during the month of Muharram, specifically on the 9th and 10th.

He said that the current margin per litre stands at Rs6, but the association has been demanding an increase of Rs5, in order to bring it to Rs11 per litre. 

Abdul Sami alleged that the government is turning a blind eye to the rampant smuggling of Iranian petrol and diesel. According to the spokesperson, the unauthorised sale of Iranian petrol and diesel have caused a significant 30% decline in the revenues of authorised petroleum dealers. 

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He also claimed that the association has repeatedly contacted the minister of state for petroleum to bring these issues to his attention, but they have yet to receive any response.

Highlighting the severity of the situation, Abdul Sami mentioned that the licences of 20 dealers have been cancelled for selling Iranian petrol. He acknowledged the presence of unscrupulous individuals within the association but stressed that the Balochistan chief minister has explicitly stated that the petrol being sold originates from bordering Iran.

Abdul Sami further claimed that Iranian petrol and diesel are openly sold at “box-pumps” located in Hub Chowki at the border of Sindh and Balochistan provinces, at a price that is 55 rupees lower than the official rate. He said that even the customs’ intelligence officials fear taking action against those involved in the smuggling due to potential repercussions from the smuggling organisations.

In addition to these concerns, Abdul Sami highlighted that the inflation rate has reached a record high of 28% compared to the previous year. Other expenses such as interest rates and electricity bills have also experienced a noticeable increase, adding to the woes of the petroleum dealers.