Petroleum dealers call off strike after govt’s assurance on deregulation policy

ISLAMABAD: The All Pakistan Petroleum Dealers Association (APPDA) has called off today’s (Tuesday) planned strike after successful negotiations with the government on the deregulation policy.

The talks between petroleum dealers and Petroleum Minister Dr. Musadik Malik, the secretary of petroleum, and officials from the Oil and Gas Regulatory Authority (OGRA) led to key assurances for petroleum dealers.

APPDA Spokesperson Nauman Ali Butt said after the meeting that the government assured them that deregulation of petroleum prices would not impact dealers’ profit margins.

The petroleum minister also pledged to take strict action against the smuggling of Iranian oil and confirmed discussions with law enforcement agencies to curb illegal fuel trade.

The association had initially threatened a nationwide strike on February 23 over oil price deregulation, giving the government 10 days to review its proposed decision. It had set a March 4 deadline, arguing that petroleum dealers had been excluded from the deregulation discussions.

The petroleum minister assured the dealers that all stakeholders would be consulted before finalising any policy on deregulation. APPDA had warned that deregulating oil pricing could allow a foreign company to take complete control of the energy sector, calling it “economic suicide.”

Hassan Shah, another spokesperson for the association, cautioned that handing a powerful foreign oil company control over Pakistan’s already fragile oil market without consulting stakeholders was not in the country’s best interest.

The association further claimed that the deregulation of lubricants and High Octane Blending Component (HOBC) had failed to benefit consumers, instead creating an oligopoly.