Petrol pumps to shut down across Pakistan from July 22

July 21, 2023 (MLN): The Pakistan Petroleum Dealers Association (PPDA) has decided to go on a countrywide strike, forcefully closing the petrol pumps across Pakistan from 06:00 PST Saturday, July 22, 2023, to urge the government to raise the commission for distributors, according to the latest press issued by the PPDA.

"We will shut down all petrol pumps across Pakistan on July 22, 6am," said the association.

The association said the supply of petrol will remain suspended until the demands are met.

The government’s low commission rate for distributors is unacceptable to the PPDA, which is the reason they have planned the nationwide strike to pressure the government to increase it.

The government currently allocates a commission of 2.4% per liter to the dealers, which has been causing financial losses to petrol pumps with low sales, leading some of them to shut down.

Due to the financial cost and other necessary expenses, the profit of low mileage pumps has completely disappeared, it added.

Moreover, the Consumer Price Index (CPI) compared to last year, has increased to about 38%, while the income in this margin (dealer’s commission) has completely diminished and is negative due to electricity and other utilities, labor, Kibor rate, and other needs.

“Acting as a backbone, they are being completely ignored by the government. You know that our association is the largest association in Pakistan, which has more than ten thousand (10,000) numbers,” it added.

Additionally, the smuggled Iranian petrol diesel has caused their sales to drop by 30% due to its open and incessant delivery.

As per the press release, they said that they contacted Mr. Mossadegh Malik, the bar owner of Petroleum, and appealed to all the major newspapers across Pakistan regarding their issue. He promised to come to Karachi, so we did not take any strict action, but he failed to show up.

Earlier, Oil Companies Advisory council (OCAC) issued a notice to Oil and Gas Regulatory Authority (OGRA) expressing that reducing the price of High-Speed Diesel by Rs7 has put severe pressure on the crippling oil industry, and has caused an inventory loss of Rs11 billion for the oil industry.

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