All Pakistan Petroleum Dealers Association (Appda) Sindh has supported a nationwide strike on March 4, while Khyber Pakhtunkhwa Petroleum Dealers Association (KPPDCA) threatens a provincial strike if the government’s proposed petroleum regulation is not reversed.

Last week, Petroleum Minister Musadik Malik revealed plans to implement a deregulation policy that would allow oil marketing companies (OMCs) to set their own fuel prices, enabling them to sell to rates under government’s fixed prices in an attempt to catch a larger market share.

However, this proposal has raised fears of potential disruptions on the market, especially affecting local refineries and oil dealers.

In SINDH, Appda members announced, including the central executive committee member Raza Abbas and key leader Nauman Butt, the strike during a press conference. ABBAS stated that the strike beginning on March 4 would continue indefinitely until the government meets the demands of the dealers.

He expressed concern that deregulation could result in cartelization with a few powerful OMCs, which disturbed the entire petroleum market. Abbas also accused the Ministry of Petroleum of protecting the interests of a selection of few companies, potentially putting the entire sector under the control of a few players.

In response to PPDA’s call, all petrol pumps in Karachi and over Sindh on March 4th are closed.

Butt criticized the ministry for not consulting the 15,000 oil dealers across the country before announcing the deregulation plans. He added that the dealers remain unaware of the details of the proposed deregulation formula.

He also warned that deregulation could make it impossible to maintain the availability of standard oil products.

He further questioned the feasibility of the Petroleum Minister’s proposal for refineries to use 5% ethanol and noted that local refineries lack capacity to produce high quality oil products with ethanol. He concluded by stating that consumers would carry the pile of the consequences of deregulation.

Meanwhile, Khyber-Pakhtunkhwa’s yellow Nawaz Afridi, President of KPPDCA, treated the concerns of the provincial dealer at a press conference stating that deregulation could lead to the increase in an oil mafia and market manipulation.

He warned that the policy would give OMCs uncontrolled power, potentially increase smuggling and hamstring of oil products.

Afridi emphasized that the country’s economy is highly dependent on taxes collected from the oil industry and that any wrong management in the sector could have serious consequences for Pakistan’s economy.

He also raised concerns about the lack of transparency that could be the result of deregulation, which further destabilized the sector. He announced that if their claims are not met before March 3, oil dealers in KP will also go on strike indefinitely.