The Pakistan Petroleum Dealers Association (PPDA) has declared a nationwide strike on July 22 to demand an increase in profit margins, which have been severely impacted by the country’s skyrocketing inflation.
With nearly 10,000 members, the association has announced the closure of all petrol pumps across the country starting from 6 pm on the specified date, said a news statement on Thursday.
Blaming the petroleum ministry for their current predicament, the PPDA stated that their appeals for higher profit margins had been ignored by the authorities.
The association highlighted the adverse effects of rising interest rates and inflation on fuel pump operators’ businesses and called for an urgent increase in the dealership margin to alleviate their financial hardships.
According to the official statement released by the PPDA, fuel sales have witnessed a significant decline of 30% due to the smuggling of Iranian fuel into the country, adding to the challenges faced by the petroleum industry.
The suspension of petrol supply during the strike will persist until the PPDA’s reservations are adequately addressed by the concerned authorities.
Pakistan is grappling with a weakened currency and a prolonged period of inflation, with the national rate reaching 29.4% in June, down from a record high of 38% in May, putting immense pressure on businesses and consumers alike.
In May, the oil industry in Pakistan had appealed for a margin of Rs12 per litre on high-speed diesel (HSD) and petrol for oil marketing companies (OMCs), citing the high cost of conducting business as the reason behind their financial hardships.
The oil industry has been grappling with significant challenges since the previous year due to various factors such as increased fuel prices in the international market, fluctuating exchange rates, elevated interest rates leading to higher inventory holding costs, credit letter confirmation charges resulting in higher demurrages, and a high turnover tax of 0.5 percent.
