Fuel Crisis Looms as Petrol Stations in Pakistan Go on Indefinite Shutdown

Fuel Crisis Looms as Petrol Stations in Pakistan Go on Indefinite Shutdown

Karachi, July 21, 2023 – In a move that will likely cause widespread inconvenience to citizens and businesses alike, the Pakistan Petroleum Dealers Association (PPDA) has declared an indefinite shutdown of petrol stations across the country beginning on Saturday, July 22, 2023.

This decision comes as a result of the escalating costs of doing business and an outcry against the government’s failure to address the rising inflation rates.

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At a press conference held on Thursday, PPDA Chairman Abdul Sami Khan expressed the grave concerns of petroleum dealers who have been struggling to maintain their operations amid the steep rise in inflation, which currently stands at approximately 38 percent. The chairman stressed that the current profit margins on petroleum products have become unsustainable in the face of mounting expenses.

Chairman Khan emphasized that the cost of running a petrol station has surged exponentially, primarily due to the soaring rates of electricity and other essential utilities required to operate these businesses effectively. Moreover, the escalating inflationary pressures have eroded the purchasing power of ordinary citizens, leading to a decline in fuel consumption and further exacerbating the situation for petrol station owners.

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In light of these challenges, the Pakistan Petroleum Dealers Association has decided to take a unified stand by ceasing all operations of petrol pumps nationwide, starting from 06:00 am on July 22, 2023, until the government takes action to increase the margin on petroleum products. The indefinite shutdown aims to draw attention to the dire state of the industry and to urge the government to intervene promptly.

While the decision to close petrol stations is undoubtedly a significant and unprecedented move, the PPDA hopes that it will serve as a catalyst for constructive dialogue between the government and industry stakeholders. The Association is calling for an urgent review of the pricing structure for petroleum products to ensure a fair and sustainable profit margin for petrol dealers, allowing them to continue their operations without incurring losses.

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The planned closure of petrol stations is expected to have a considerable impact on daily life and business activities across Pakistan. Commuters, in particular, are likely to face difficulties in accessing fuel for their vehicles, potentially leading to transportation disruptions and affecting essential services.

The government is yet to issue an official response to the PPDA’s announcement, but with petrol stations set to halt their services, it is hoped that the authorities will engage in talks with industry representatives promptly to resolve the situation before it escalates further.

As the situation unfolds, citizens are urged to stay informed about developments and seek alternative means of transportation during the period of the protest. The PPDA has assured the public that its actions are motivated by the necessity to secure a sustainable future for the petroleum industry in Pakistan.

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In the coming days, both the government and the Pakistan Petroleum Dealers Association must find common ground and implement solutions to alleviate the hardships faced by the dealers and the public alike. Collaborative efforts are crucial to navigating through this challenging economic landscape and ensuring a stable and prosperous future for all stakeholders involved in the nation’s energy sector.