PPDA condemns government decision to deregulate petroleum prices

KARACHI: The Pakistan Petroleum Dealers Association (PPDA) has opposed the recent government’s announcement to deregulate petroleum prices in the country.

Chairman PPDA Abdul Sami Khan, in a letter to Petroleum Minister Musadik Malik, expressed surprise and concern regarding his recent announcement about the deregulation of the oil industry.

Referring to a previous meeting, he mentioned that it was clearly conveyed that any move towards deregulation would not proceed without consultation with the PPDA, which is a major stakeholder in the petroleum industry, with a network of over 15,000 retail outlets across Pakistan and significant investments amounting to trillions of rupees.

“[The]PPDA condemn[s] this unilateral decision by the government. This decision has been made without our input, contradicting the assurance given by the Minister in our last meeting that no actions would be taken without prior discussions with us”, Sami stated.

While the Minister has suggested that deregulation will foster competition among Oil Marketing Companies (OMCs) and lower fuel prices for the public, the Association believes that this policy has been announced without adequate consideration of its implications.

It noted that a major concern is the potential for a significant rise in adulterated oil and a doubling of smuggled Iranian petroleum products, which the government has yet to control effectively.

The PPDA strongly opposed the move and urged an immediate review of the decision and requested that the minister convene a meeting with a delegation from the PPDA to discuss this matter thoroughly.