Petro retailers threaten nationwide strike over oil price deregulation.

ISLAMABAD: The All Pakistan Petroleum Dealers Association rejected the government’s decision to deregulate oil prices. It warned of a countrywide strike to press for a reversal of the disastrous move.

It warned that the deregulation of oil pricing would lead to a foreign company taking total control of lifeline energy, which is equivalent to economic suicide.

Hassan Shah, the association’s spokesperson, told the petroleum dealers that giving a powerful Saudi oil company complete control over Pakistan’s precarious oil market without consulting stakeholders is not in the country’s best interests.petrol import on deferred payment

He said the unfortunate decision of deregulation would disrupt the entire supply chain from top to bottom and eventually give a strong foreign player a monopoly on the Pakistani oil market.

He claimed that Pakistani oil refineries would have no choice but to close since they lacked the financial capacity to compete with strong foreign players.

He emphasized that it is not in the nation’s best interests to eliminate every possibility of competition and leave it up to one multinational company.

Hassan Shah said Pakistan mostly has fuel reserves for no more than 15 days; free market principles can be applied in countries that can store oil for months.

The deregulation of lubricants and HOBC (High Octane Blending Component) has not benefitted consumers in any way, but it has resulted in a cartelizing oligopoly.

Moreover, the Competition Commission of Pakistan is ineffective enough to ensure system transparency, as in Western countries. Therefore, consumers will ultimately pay more than benefit from the free market.