Petroleum dealers in Khyber Pakhtunkhwa threaten strike over deregulation policy
The Khyber Pakhtunkhwa Petroleum Dealers and Cartage Association (KPPDCA) have expressed serious concerns about the proposed petroleum deregulation, warning of a potential province-wide strike if the policy is not revoked within the next week. The Federal Minister for Petroleum, Musadik Malik, recently announced plans to introduce a deregulation policy that would allow oil marketing companies (OMCs) to set their fuel prices, sparking fears of market manipulation and the emergence of an oil mafia.
President of KPPDCA, Gul Nawaz Afridi, criticized the move, stating that allowing OMCs to sell fuels at prices lower than those set by the government could create room for smuggling, hoarding, and other malpractices in the industry. He emphasized the significant role of the petroleum sector in the country’s economy, stressing that any mismanagement could have detrimental effects. Afridi expressed concerns that deregulation might compromise transparency in the oil industry, leading to disruptions in operations.
As a response to these developments, KPPDCA has issued an ultimatum, threatening to go on an indefinite strike if their demands are not addressed by March 3. Abdul Sami Khan, Chairman of the Pakistan Petroleum Dealers Association (PPDA), also criticized the government’s decision to deregulate the oil industry, expressing surprise and disappointment at the lack of consultation with major stakeholders like PPDA before embarking on such a significant policy change. Khan highlighted that the unilateral decision contradicted previous assurances made by the petroleum minister during a meeting with key industry representatives.
While the government maintains that deregulation will increase competition among OMCs and result in lower fuel prices for consumers, industry insiders are skeptical. There are concerns that the influx of smuggled and adulterated petroleum products may rise, posing further challenges to an already volatile market. The PPDA has strongly opposed the policy and called for an immediate review, urging the government to engage in meaningful discussions with industry stakeholders before implementing such far-reaching changes.
One of the main worries of industry players is the potential disruption of the supply chain and the adverse impact on local refineries, struggling to compete with international giants. With frequent fuel shortages already plaguing smaller cities, the lack of sufficient infrastructure could exacerbate the situation further, posing risks to market stability. The implications of deregulation could be severe, prompting calls for a cautious and consultative approach to any policy changes in the petroleum sector.
