According to media, the Petroleum Dealers Association announced that negotiations with the Secretary of Petroleum were successful. The federal minister assured the dealers that deregulation would not affect their margins.
The association further stated that the federal minister had committed to taking action against the smuggling of Iranian oil. Discussions will be held with law enforcement agencies to address the issue.
Following successful negotiations with the federal government on the deregulation policy, the All Pakistan Petroleum Dealers Association (APPDA) on Monday took back its strike call for March 4 (tomorrow).
Following their negotiation with Petroleum Minister Dr Musadik Malik, a spokesperson for the APPDA announced: “Petroleum dealers have taken back their strike call for tomorrow.”
Sources privy to the matter said that both sides agreed that the dealers' association would be taken on board over the deregulation process of the petroleum sector.
Talking to journalists, APPDA central spokesperson Noman Ali Butt announced: “Our negotiations with the government have been successful.” He said that the petroleum minister assured them that deregulation process won’t affect profit margin of the dealers.
Butt said that the minister also assured them of curbing smuggling of oil from Iran.
Last month, the petroleum minister stated that the government was planning to implement a deregulation policy, enabling oil marketing companies (OMCs) to compete by setting their fuel prices.
Reacting to his plan, the APPDA threatened a nationwide strike in protest against the government's plan to deregulate oil prices. The proposed plan sparked fears of foreign dominance over the local oil market among the petroleum dealers
The APPDA gave the government until March 4 to address their concerns, arguing they were excluded from discussions on deregulation.
The Oil and Gas Regulatory Authority (Ogra) chairman, however, had downplayed the strike threat, calling it a misunderstanding.
“Dealers fear oil companies may reduce their profit margins under deregulation,” he had said.
The Pakistan Petroleum Dealers Association (PPDA) has strongly opposed the government’s deregulation policy and issued a warning of a nationwide petrol pump shutdown if their demands are not met.
In a video statement, PPDA Chairman Abdul Sami Khan rejected the deregulation formula for petroleum product prices, warning that it would pave the way for large-scale smuggling and fuel adulteration.
Khan explained that deregulation would allow individual petrol stations to set their own prices, potentially leading to market instability. In response, the PPDA has convened an emergency meeting of its central committee and announced that protest banners will be displayed at petrol pumps across the country starting today.
Meanwhile, the association is preparing to formally oppose the policy by submitting a letter to the Petroleum Ministry.
One of the core demands of the PPDA is an increase in petroleum dealers’ profit margins. Khan urged the government to raise the per-liter margin by 4%, bringing it up to Rs 13. He claimed that while the Oil and Gas Regulatory Authority (OGRA) has expressed support for petroleum dealers, it has failed to take a firm stance before the Petroleum Ministry.
Khan also highlighted the resurgence of petroleum smuggling from Iran, calling on the federal government to sign a legal agreement with Iran to regulate fuel imports and curb illicit trade.
He criticized Minister of State for Petroleum Musadik Malik for failing to engage with petroleum dealers, arguing that deregulation would not result in lower fuel prices for consumers as claimed by the government.
With tensions escalating, the possibility of a nationwide fuel shortage looms, putting further pressure on authorities to address the concerns of petroleum dealers before the situation worsens.
