Petroleum Dealers Demand Nationwide Strike

21 Jul 2023

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Petroleum Dealers Demand Nationwide Strike

In a remarkable move to demand justice for their dwindling profit margins amidst soaring inflation, the Pakistan Petroleum Dealers Association (PPDA) has declared a nationwide strike on July 22, 2023. United with nearly 10,000 members, the association intends to close all petrol pumps across the country at 6 pm on the designated day.

Unanswered Calls for Action

Criticizing the authorities for their failure to address their legitimate demands, the PPDA squarely points fingers at the petroleum ministry. Abdul Sami Khan, the spokesperson for the association, expressed frustration over their numerous attempts to reach the minister of state for petroleum, yielding no response thus far.

License Revocations and Smuggling Concerns

Abdul Sami highlighted the gravity of the matter, revealing that 20 dealers had their licenses revoked due to the sale of Iranian petrol. Though acknowledging the presence of dishonest elements within the association, he emphasized that the Balochistan chief minister had openly acknowledged the sale of Iranian fuel.

Struggling Fuel Pump Operators

As economic challenges persist, fuel pump operators are facing an economic downturn caused by increased interest rates and inflation, significantly affecting their businesses. To counter these adverse effects, they are urging an increase in the dealership margin.

Pressing Concern: Rampant Smuggling

The PPDA underscores a pressing concern - sales have plummeted by 30% due to rampant smuggling of Iranian fuel into the country. This illicit practice puts immense pressure on legitimate players within the fuel industry to sustain their operations.

Economic Crisis and Soaring Inflation

Amid a weakening currency and prolonged inflationary pressures, Pakistan is grappling with an economic crisis. The national inflation rate reached a staggering 29.4% in June, placing the fuel industry under significant financial strain.

Previous Demands and Urgent Review

Earlier in May, the oil industry called for a Rs. 12/liter margin on high-speed diesel (HSD) and petrol for oil marketing companies (OMCs). With multiple challenges including surging international fuel prices, exchange rate fluctuations, increased interest rates, higher demurrages, and a hefty turnover tax, the fuel industry faces urgent challenges that demand attention.

Insufficient Solutions

Though the margin for HSD and petrol was revised to Rs. 6/liter based on a decision by the Economic Coordination Committee in October 2022, the PPDA believes it fails to address the critical issues. Urgent government intervention is needed to find a viable solution and provide much-needed relief to fuel industry operators.

The PPDA's upcoming strike on July 22 serves as a strong stance in support of its members and the fuel industry, underlining the severity of their grievances.

Pakistan Petroleum Dealers Association Nationwide Strike

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