In response to their dissatisfaction with the lack of an increase in dealers’ margins and concerns over the rampant smuggling of Iranian petrol, the Pakistan Petroleum Dealers Association (PPDA) has declared the nationwide closure of petrol stations starting from July 22. The indefinite strike aims to address the pressing issues faced by authorized petroleum dealers and draws attention to the challenges impacting the industry.


Fuel Dealers’ Grievances

During a press conference at the Karachi Press Club, the PPDA spokesperson, Abdul Sami Khan, expressed the association’s demand for an increase in dealers’ margins from the current Rs6 per litre to Rs11 per litre. The association claims that the government has overlooked the smuggling of Iranian petrol and diesel, leading to a substantial 30% decline in authorized dealers’ revenues.


Communication with Authorities

Abdul Sami highlighted the association’s attempts to communicate their concerns to the Minister of State for Petroleum, seeking action on the issues of smuggling and revenue decline. Unfortunately, they are yet to receive any response, leaving the dealers feeling unheard and left with no alternative but to initiate the nationwide closure.

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Smuggling Challenges

Drawing attention to the severity of the smuggling issue, Abdul Sami pointed out the cancellation of licenses for 20 dealers involved in the unauthorized sale of Iranian petrol. The association acknowledges the presence of unscrupulous individuals but cites the Balochistan Chief Minister’s statement, stating that the petrol being sold originates from neighboring Iran.


Inflation and Economic Impact

In addition to the smuggling concerns, Abdul Sami expressed the dealers’ distress over the soaring inflation rate, which has reached a record high of 28% compared to the previous year. Rising expenses such as interest rates and electricity bills further exacerbate the challenges faced by petroleum dealers.


Addressing the Crisis

With the indefinite strike set to begin on July 22, the PPDA aims to bring attention to the urgent matters affecting the authorized petroleum dealers in Pakistan. The closure of petrol pumps, except for two days during Muharram, is intended to spur action and address the grievances to safeguard the interests of the association and the broader industry.


The nationwide closure of petrol pumps announced by the Pakistan Petroleum Dealers Association serves as a call to action for addressing critical concerns related to dealers’ margins and the rampant smuggling of Iranian petrol. As the strike takes effect, the association hopes to initiate a dialogue with relevant authorities and find sustainable solutions to safeguard the interests of authorized petroleum dealers amidst the challenging economic climate.