ISLAMABAD – The Pakistan Petroleum Dealers Association (PPDA) has announced an indefinite distribution shutdown, which will begin on Saturday, July 22, 2023 at 6 AM.
Petroleum Dealers Strike Reason
The strike has been called as a result of a disagreement over commission rates. Dealers now earn a 2.4 percent per litre profit, which they want boosted by 5%. The Chairman of the PPDA, Abdul Sami Khan, underlined the increased demands on their profit margin, with prices rising from 6 rupees to 11 rupees per litre.
The Petroleum Association also raised concern over the extensive smuggling of Iranian petrol and fuel, which it claims is being facilitated by the government. This illegal activity has had severe consequences for authorized petroleum dealers, resulting in a significant drop in sales. As a result, the dealers have suffered enormous financial losses.
The PPDA wrote to the Petroleum Minister, Musadik Malik, in order to address this and other grievances. The letter the association sent went unanswered, so they were left with no choice but to strike.
According to Abdul Sami Khan, the petroleum dealers have cancelled the licenses of 20 dealers for selling Iranian petrol, and there are black sheep in the association, despite the fact that the Chief Minister of Balochistan has said categorically that the petrol is Iranian.
He said that Iranian fuel and diesel are openly supplied at the box pumps of Sarhad Hub Choki in Sindh Balochistan for 55 rupees less than the official price.
According to Abdul Sami Khan, the inflation rate has reached the maximum level of 28% compared to previous year, and interest rates, electricity, and other costs have also increased significantly.
The reason for the strike is their demand that the government increase the commission provided to distributors.
According to Abdul Sami Khan, Chairman of the PPDA, they have formally requested that the government increase their commission per liter by 5%. The government now gives dealers a 2.4 percent fee for each liter.
Impact on the General Public
Fuel supply across the country has been cut off, causing problems for the general public. In order to minimize inconvenience, people are advised to refuel their vehicles before Friday night, July 21. Petroleum industry associations are committed to continuing the strike until concrete measures are taken to address the issues by the Petroleum Ministry.
In conclusion, the Pakistan Petroleum Dealers Association’s decision to strike indefinitely stems from their desire for a higher commission. They are also attempting to solve the severe issue of petrol smuggling, which has damaged their sales. The strike, which is planned to begin on July 22, will likely have a severe impact on the country’s fuel supply and economy.
