Petroleum dealers reject deregulation bid

Representatives of the Pakistan Petroleum Dealers Association have rejected the proposed deregulation of the fuel market, warning that such a move would lead to a sharp increase in petrol prices from Karachi to northern regions.

They suggested that instead of deregulation, the government should remove the petroleum levy, which could lower fuel prices by up to Rs60 per litre.

During a press conference, the Coordinator to Petroleum Dealers Association Chairman Raja Waseem stated that they were open to negotiations with the government but have not yet received any response to their concerns.

"The entire issue revolves around the Inland Freight Equalisation Margin, and oil marketing companies are increasing their profits by directly operating fuel stations," he said.

Waseem emphasised that past attempts at deregulation had faced resistance, particularly from Khyber Pakhtunkhwa, and warned that it could lead to cartelisation, as seen in the cement and sugar industries.

He further pointed out that smuggled Iranian fuel is disrupting the market, with adulterated and mixed fuel being sold at higher profits, making it difficult for legal businesses to survive.