Islamabad (NEWS Reporter)
– The All Pakistan Petroleum Dealers Association (APPDA) has rejected the government’s decision to deregulate oil prices on Sunday. The association threatened to strike nationwide if the decision is not reversed. In a press release, APPDA stated that deregulating oil prices would give foreign companies complete control over the crucial energy sector, which it called economic suicide. APPDA spokesperson Hassan Shah told petroleum dealers that giving full control of Pakistan’s oil market to a Saudi oil company without consulting stakeholders is against the national interest.
Hassan Shah further stated that the deregulation would impact the entire supply chain, eventually leading to a monopoly by a strong foreign player. He added that Pakistani oil refineries lack the financial strength to compete, leading to their closure. He warned that the decision would eliminate competition and hand over control to a multinational company. Shah emphasized that Pakistan’s fuel reserves only last 15 days, unlike other countries where reserves last months, making deregulation inappropriate.
Hassan Shah also argued that the deregulation of fuel prices and components would not benefit consumers but result in cartelization and price hikes. He warned that it would lead to unprecedented inflation and a decline in the exchange rate, severely damaging the economy. He called for a review of the strategic effects by the Ministry of Defense and urged policymakers not to jeopardize national energy security to appease companies. The APPDA believes that deregulation would harm businesses and the public, and the government should abandon the plan.
