In partnership with Friday, 21 July, 2023 I 2 Muharram, 1444
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Rs 15.00 | Vol XIV No 21 I 8 Pages I Karachi Edition
PETROLEUM DEALERS THREATEN NATIONWIDE CLOSURE OF PETROL PUMPS
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PROFIT
SHAHAB OMER
N a press conference held at the Pakistan Petroleum Dealers Association (PPDA) headquarters in Lahore, representatives of the PPDA expressed their deep concern over the surging inflation rate and the influx of smuggled Iranian petrol and diesel, which they claim has severely impacted their business.
The association, with a vast network of over twelve thousand members nationwide, announced their decision to forcefully close all petrol pumps across Pakistan from 6:00 am on Saturday, 22nd July 2023, unless their demands are met. The dealers, who play a crucial role in the country’s economy, pointed out that the Consumer Price Index (CPI) has drastically increased, with inflation rates reaching a staggering 38% compared to 19.9% in the previous year. Additionally, the soaring costs of
electricity, labor, KIBOR (KIBOR rate), and other necessary expenses have resulted in a significant decrease in their profit margins, with some dealers even experiencing negative income. “Our association is the largest in Pakistan, and we have been working in agreement with the government since 1999,” stated a spokesperson from the association. “Initially, we were entitled to a 5% profit, which was gradually reduced to 4% by 2004. The current government’s decision to limit a mere
2.40% profit, amounting to six rupees per liter, has left us deeply dissatisfied.” Despite repeated attempts to engage with the government and address their concerns, the dealers claimed that they have been ignored and their appeals have fallen on deaf ears. They have also sought the attention of major newspapers across the country to highlight their plight. Furthermore, the association raised serious apprehensions about the rampant smuggling of Iranian petrol and
diesel, which has reportedly caused a significant decline in their sales by approximately 30%. They urged the government to take immediate action to curb the illegal supply of smuggled fuel and protect their businesses from further losses. In light of the pressing issues faced by the petroleum dealers, the PPDA have decided to resort to a drastic measure of closing all petrol pumps nationwide in a bid to pressure the government into addressing their grievances.