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Pakistan

Petrol stations may shut down as dealers oppose deregulation plan

Petroleum dealers say deregulating fuel prices will lead to smuggling and mixing of poor-quality petroleum products

GNN Web Desk
Published a day ago on Feb 20th 2025, 6:50 pm
By Web Desk
Petrol stations may shut down as dealers oppose deregulation plan

(Web Desk): Pakistan's petroleum dealers have strongly opposed the government's plan to deregulate fuel prices, warning that they may shut down petrol stations across the country.

Abdul Sami Khan, Chairman of the All Pakistan Petroleum Dealers Association, shared his concerns in a video message. He said that deregulating fuel prices would lead to smuggling and the mixing of poor-quality petroleum products.

Khan explained that under the proposed plan, petrol stations would be allowed to set their own prices, which could cause confusion and unfair pricing across the country. In response, the association has called for an emergency central committee meeting, and protest banners are expected to appear nationwide.

The association is also planning to send a letter to the Petroleum Ministry, urging the government to increase the profit margin for dealers. Currently, the margin is 4 percent, but the dealers are asking for it to be raised to Rs13 per litre.

Although the Oil and Gas Regulatory Authority (OGRA) has shown support for the dealers, they have not made any public statements. Khan also raised concerns about the growing smuggling of petroleum from Iran and urged the federal government to negotiate a legal deal with Iran to stop the illegal trade.

He criticized Minister Musaddiq Malik for ignoring the dealers' concerns, claiming that deregulation would not reduce fuel prices for the public.

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