The Pakistan Petroleum Dealers Association (PPDA) has strongly opposed proposed amendments to the Petroleum Act of 1934. The changes grant civil bureaucrats enhanced monitoring powers over petroleum dealers. PPDA Chairman Abdul Sami Khan announced a potential nationwide strike if demands are unmet. The amendments shift regulatory authority from OGRA to assistant and deputy commissioners, sparking industry backlash.
Press Conference at Karachi Press Club
On Saturday, PPDA leaders addressed media at the Karachi Press Club. Abdul Sami Khan and Malik Khuda Bakhsh criticized the government’s amendments. They argued that empowering bureaucrats over regulators disrupts industry oversight. Khan warned of a strike if negotiations fail. The association insists on retaining OGRA’s authority, fearing bureaucratic overreach could harm dealers’ operations unfairly.
Government Meeting Scheduled for Monday
A critical meeting with the petroleum minister is set for May 26. Khan stated the PPDA will demand amendments be revoked or revised. If unresolved, dealers will proceed with a nationwide strike. The association seeks fair regulations, not excessive bureaucratic control. Dealers argue that smuggling crackdowns should not penalize legitimate businesses through harsh oversight measures.
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Concerns Over Bureaucratic Powers
Malik Khuda Bakhsh highlighted risks of granting investigative powers to DCs and ACs. He cited a Shah Faisal fuel pump fire, where licensing irregularities were discovered. Bakhsh argued such authority should remain with OGRA, not local bureaucrats. The PPDA fears outdated laws will enable misuse of power, disrupting business operations. They demand modernization of regulations to align with industry needs.
Unresolved Margin Increases
Khan noted stagnant petroleum margins despite government promises. Dealers have faced financial strain due to unchanged profit rates for years. The PPDA links margin issues with broader regulatory frustrations. They argue fair compensation is essential amid rising operational costs. Unaddressed grievances contribute to the strike threat, emphasizing the need for government accountability in sector reforms.
Opposition to Closed-Door Decisions
Raja Waseem, a PPDA member, criticized exclusion from policy discussions. He claimed oil marketing companies (OMCs) influence decisions while dealers are sidelined. Waseem opposed bureaucratic powers, advocating transparent, inclusive policymaking. The PPDA demands representation in regulatory discussions to ensure fair treatment. They warn that unilateral decisions risk destabilizing the fuel supply chain nationwide.
Call for Balanced Regulations
The PPDA acknowledges the need for anti-smuggling measures but rejects overregulation. They seek balanced laws targeting illegal trade without burdening legitimate dealers. Khan emphasized that excessive scrutiny harms businesses already complying with laws. The association urges collaborative reforms, ensuring effective oversight without bureaucratic overreach.
Potential Impact of Nationwide Strike
A dealers’ strike could severely disrupt fuel supply across Pakistan. Stations may shut down, causing shortages and economic strain. The PPDA hopes negotiations prevent such action but remains prepared for protests. The government faces pressure to address concerns promptly, avoiding widespread industry backlash.
Conclusion: Urgent Resolution Needed
The PPDA’s demands highlight tensions between dealers and regulators. With a strike looming, the government must engage constructively. Balancing oversight and industry interests is crucial to prevent disruptions. The May 26 meeting will determine whether a compromise is possible or if nationwide protests become inevitable.