Islamabad, Feb 24: The All Pakistan Petroleum Dealers Association (APPDA) has strongly opposed the government’s plan to deregulate oil prices, warning of a nationwide strike if the policy is implemented.
APPDA spokesperson Hassan Shah expressed concerns that deregulation would disrupt the supply chain and create a monopoly by a multinational oil company, making it difficult for local refineries to compete. He pointed to past deregulation of lubricants and high-octane blending components (HOBC), which resulted in an oligopoly rather than benefiting consumers.
Shah also cautioned that deregulation could lead to inflation, rupee depreciation, and further economic instability. He emphasized that Pakistan lacks sufficient oil storage capacity for a free market system, as the country can only maintain reserves for 15 days, unlike Western nations that stockpile fuel for months before deregulation.
The APPDA has urged the government, the central bank, and the Ministry of Defence to carefully assess the strategic, economic, and security implications of deregulating fuel prices. The association insists that continued price regulation is necessary to prevent market instability and potential price manipulation.
