Long queues at petrol stations in major cities as citizens rush to refuel ahead of strike
Pakistan Petroleum Dealers Association (PPDA) started a nationwide strike on Thursday for an indefinite period of time against the government’s failure to increase their profit margin.
“This strike is nationwide. This is all over Pakistan and it will be for an indefinite period. We will not make our pumps operational till our demands are met,” Khwaja Asif Ahmed, secretary of information at Pakistan Petroleum Dealers Association, told media on Wednesday evening.
The petrol retailers maintained that the government’s move to raise taxes and boost revenue under its agreements with the International Monetary Fund (IMF) significantly dropped their profit margins.
OGRA will curb impact of strike
The country’s Oil and Gas Regulatory Authority (OGRA) took notice of “entities striving to disrupt oil supplies at petrol pumps” and assured to curb the effect of strike. The authority said it will ensure uninterrupted oil supplies at retail outlets and threatened that it can take legal action against disruptions.
“All oil marketing companies have been advised to ensure uninterrupted oil supplies at retail outlets and OGRA enforcement teams are in-field to ensure the same,” the OGRA’s statement said. “Anyone involved in oil disruptions causing public inconvenience shall be dealt strictly in accordance with OGRA laws.”
Summary to increase dealers’ profit margin sent to ECC
Meanwhile, a spokesperson for the Ministry of Energy has said that a summary to increase dealers’ profit margin has already been sent to the Economic Coordination Committee (ECC) and is awaiting approval.
The petroleum ministry added that petrol will be available at the petrol pumps operated by PSO, Gas and Oil Pakistan Limited, Hascol and Shell.
“Fuel will be available at all Pakistan State Oil (PSO), Shell and Total stations in country,” he claimed, adding that oil tankers had been sent to these stations.
Long queues at petrol stations
Traffic jams were reported in major cities across the country and long queues were seen at petrol stations on Wednesday after Large crowds of drivers, with their cars and motorbikes, gathered at petrol stations in main cities, including Lahore and Karachi ahead of the nationwide strike by the petroleum dealers association
The government is reportedly planning to further increase petroleum prices as part of the agreement it struck with IMF earlier this month to release around $1 billion of a $6 billion financing facility. The government has already raised fuel prices several times this year and will continue to increase it Rs.5 per month as part of the petroleum levy under the IMF’s condition until it touches Rs.30 hike.
Pakistan’s gas station association also reported a decline in profit margins over the last few months as the government previously increased the petroleum levy.