PPDA warns of industry collapse over deregulation push

KARACHI: The Pakistan Petroleum Dealers Association (PPDA) has alleged that Petroleum Minister Musadik Malik is driving the petroleum industry towards ruin by advocating for deregulation.

Speaking at a press conference at the Karachi Press Club on Saturday, PPDA Chairman Abdul Sami Khan said the government had been pushing for the deregulation of the petroleum industry for the past three years. However, the government later assured the association that it would be consulted on the matter. Despite this promise, the PPDA claims the petroleum minister is making unilateral decisions without any consultation. The association warned that if deregulation moves forward, they would be compelled to shut down petrol pumps.

Abdul Sami Khan also argued that deregulation would lead to a rise in smuggled petroleum products, which would not only devastate the industry but also damage vehicle engines, as smuggled fuel is unrefined.

He criticised the government for citing examples from Europe and the US, arguing that market conditions there are different. He added that the PPDA had sent a letter to the petroleum minister, stressing that deregulation should not occur; otherwise, they would have no choice but to close down petrol pumps. To combat petroleum smuggling, the PPDA chairman said they had met with the inspector general of Sindh, as well as Rangers, police, and customs officials. He emphasised that the association is prepared to take legal action and even protest in the streets if necessary.