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Petroleum dealers warn of indefinite nationwide shutdown

Business Recorder • • 1 min read

Petroleum dealers warn of indefinite nationwide shutdown

According to Business Recorder, the Pakistan Petroleum Dealers Association (PPDA) has given the government 72 hours to act on its demands. Otherwise, it warned, fuel stations nationwide will close with no set end date, beginning 6:00am on Saturday, August 15. The ultimatum came after the association said the government had not honoured commitments the Petroleum Ministry made to resolve dealers' concerns.

PPDA Chairman Malik Khuda Bakhsh said dealers nationwide want petrol margins raised to at least 8 percent, arguing the current figure cannot absorb higher power and gas bills, wages and other costs. He said more than 14,000 affiliated dealers are pressing for action. The association also objects to the 24-hour petroleum price change mechanism, calling it impractical, and to the Company Allocation Policy, which it considers discriminatory.

Khuda Bakhsh stressed that the association does not seek confrontation and is ready to talk with the Petroleum Ministry, OGRA and oil marketing companies. He added, however, that the government must take immediate, practical steps on the grievances. The PPDA says the planned closure, if implemented, would disrupt retail fuel supply nationwide.

At a glance

  • PPDA gave the government 72 hours before an indefinite nationwide petrol station shutdown.
  • Dealers want petrol margins of at least 8 percent, citing rising electricity, gas and salary costs.
  • The association also opposes the 24-hour price change mechanism and the Company Allocation Policy.
Sectors:Oil & Gas Marketing Companies

Originally reported by Business Recorder

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