The All Pakistan Petroleum Dealers Association (APPDA) has threatened a nationwide strike against the government’s plan to deregulate oil prices.
APPDA spokesperson Hassan Shah said deregulation would disrupt the entire supply chain and cause monopolization by a multinational company. He warned that local oil refineries might shut down due to their inability to compete with financially stronger foreign players.
He said past deregulation of lubricants and high-octane blending components (HOBC) resulted in an oligopoly rather than benefiting consumers. He cautioned that the latest move could trigger inflation, rupee depreciation, and more economic turmoil.
The spokesperson said Pakistan lacks sufficient oil storage capacity for a free market system, with supply shortages frequently affecting smaller cities. Unlike Western nations that ensure months of stockpiles before deregulating fuel prices, Pakistan can only maintain reserves for 15 days.
The APPDA spokesperson urged the government, the central bank, and the Ministry of Defence to assess the strategic, economic, and security implications of the decision. He said fuel price regulation remains necessary to prevent market instability and price manipulation.
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I am sure deregulation start competition and whoever keep the price low, can get more revenue and people will be the final beneficiaries. So, keep the price low by one company will urge the other to take the price down too. It clearly shows that petroleum mafia doesn’t want to loose the revenue.