Chairman of the All Pakistan Petroleum Dealers Association (APPDA), Abdul Sami Khan, has warned the federal government of petrol dealers’ nationwide strike after government announced deregulation of petroleum sector.
Federal Minister for Petroleum, Musadik Malik, during an address at the Global Oil and Gas Conference , revealed that the government would implement the deregulation policy in the petroleum sector.
The Minister stated that the move would encourage oil companies to compete in open market, ultimately offering cheaper petrol to consumers.
However, the country’s petroleum dealers have rejected the government’s deregulation policy warning what they may call for a shutdown of petrol pumps across the country.
Abdul Sami Khan, voiced his concerns saying that the deregulation policy would incentivise smuggling and contamination of fuel in the country.
According to him, “Deregulation formula would allow petrol stations to set their own prices, which could result in inconsistencies and unfair pricing across the nation.”
The APPDA has demanded a Rs13 per litre margin in the petrol sales while cautioning that deregulation would not make the fuel cheaper for the consumers.
The Chairman APPDA also highlighted the increase in petrol smuggling through Iranian border and called on the government to tackle the smuggling.
Petrol Pumps’ Woe: Smuggling
It merits a mention that high-level investigation last year revealed that the Iraninan fuel smuggling is worth more than $1 billion in 2024.
Earlier this week, Finance Minister Muhammad Aurangzeb addressed the Senate Standing Committee on Finance and Revenue revealed that the government efforts have led to decrease in the number of smugglers from 4000 to 100-200.
He highlighted that although the government has reduced the number of smugglers in the Pakistan-Iran border, it has yet to be completely eradicated.
Aurangzeb noted that Pakistan is improving in legal trade practices citing the recent successful sugar export to Afghanistan through official channels for the first time in history.
