Sindh, K-P petroleum dealers threaten strikes on March 4

Nationwide strike looms as petroleum dealers in Sindh and K-P oppose government's proposed deregulation plan.

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The All Pakistan Petroleum Dealers Association (APPDA) Sindh has backed a nationwide strike on March 4, while the Khyber Pakhtunkhwa Petroleum Dealers Association (KPPDCA) threatens a province-wide strike if the government's proposed petroleum deregulation is not reversed.

Last week, Petroleum Minister Musadik Malik revealed plans to implement a deregulation policy that would allow oil marketing companies (OMCs) to set their own fuel prices, enabling them to sell at rates below the government’s fixed prices in a bid to capture a larger market share.

However, this proposal has raised fears of potential disruptions in the market, particularly affecting local refineries and petroleum dealers.

In Sindh, APPDA members, including Central Executive Committee member Raza Abbas and key leader Nauman Butt, announced the strike during a press conference. Abbas stated that the strike, which will begin on March 4, would continue indefinitely until the government addresses the dealers' demands.

He expressed concern that the deregulation could result in cartelisation by a few powerful OMCs, disrupting the entire petroleum market. Abbas also accused the Ministry of Petroleum of protecting the interests of a select few companies, potentially putting the entire sector under the control of a few players.

In response to the PPDA’s call, all petrol pumps in Karachi and across Sindh will be closed on March 4.

Butt criticised the ministry for not consulting the 15,000 petroleum dealers across the country before announcing the deregulation plans. He added that the dealers remain unaware of the specifics of the proposed deregulation formula.

He also warned that deregulation could make it impossible to maintain the availability of standard petroleum products.

He further questioned the feasibility of the petroleum minister's proposal for refineries to use 5% ethanol, noting that local refineries lack the capability to produce high-quality petroleum products with ethanol. He concluded by stating that consumers would bear the brunt of deregulation’s consequences.

Meanwhile, Khyber-Pakhtunkhwa's Gul Nawaz Afridi, president of KPPDCA, addressed the concerns of the province’s dealers in a press conference, stating that deregulation could lead to the rise of an oil mafia and market manipulation.

He warned that the policy would grant OMCs unchecked power, potentially increasing smuggling and hoarding of petroleum products.

Afridi stressed that the country’s economy relies heavily on taxes collected from the petroleum industry and that any mismanagement in the sector could have grave consequences for Pakistan's economy.

He also raised concerns about the lack of transparency that could result from deregulation, further destabilising the sector. He announced that if their demands are not met by March 3, petroleum dealers in K-P will also go on strike indefinitely.