Petrol dealers in Pakistan threaten nationwide strike over government’s oil price deregulation plan, citing fears of foreign control and national energy security risks.
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| Pakistan’s petroleum dealers association threatens a strike over oil price deregulation plans, warning of negative economic and security consequences. Image: ChicHue |
Islamabad, Pakistan — February 24, 2025:
Pakistan’s All Pakistan Petroleum Dealers Association (APPDA) has announced plans for a nationwide strike in response to the government’s proposed deregulation of oil prices. The proposal, which is backed by the Petroleum Division and the Oil and Gas Regulatory Authority (Ogra), has raised concerns over foreign influence on the country’s oil market and its potential risks to national energy security, reports a DAWN.
In a statement released after a meeting of its executive committee, the APPDA emphasized the dangers of deregulating oil prices in a country that lacks the infrastructure to support a free market. The association argued that such a move would leave the country vulnerable to foreign control and further jeopardize its energy security.
“We urge the government to reconsider the deregulation proposal, as it could have disastrous consequences for Pakistan,” said Hassan Shah, spokesperson for the APPDA. He explained that the deregulation could lead to foreign corporations monopolizing the market, pushing local refineries out of business. Without financial capacity to compete with global giants, Pakistani refineries would likely close, leaving the country dependent on foreign players.
The APPDA further criticized the deregulation of lubricants and high-octane blending component (HOBC), which it claims has already resulted in negative impacts, including the creation of an oligopoly that has failed to benefit consumers. Shah warned that this deregulation would contribute to rising inflation and further depreciation of the Pakistani rupee, worsening the economic crisis.
Shah also raised concerns about the national security implications, stressing the importance of oil to Pakistan’s strategic stability. He called on the Ministry of Defence to review the strategic ramifications of deregulation and urged the government and the central bank to assess its potential effects on inflation and the country’s currency.
Pakistan’s oil market has been historically regulated to ensure price stability, especially in light of the country’s inability to maintain large fuel stockpiles. While Western nations have embraced free-market oil pricing after securing stable supply chains and substantial reserves, Pakistan faces regular shortages and disruptions, particularly in smaller cities. The APPDA warned that deregulation would cause a steady increase in fuel prices, which would adversely affect both businesses and consumers.
In light of these concerns, the APPDA has vowed to mobilize support for a nationwide strike if the government moves forward with deregulation. The association’s members believe that strict regulations are necessary to protect consumers and maintain market stability in the face of unpredictable local conditions.