ISLAMABAD: The Petroleum Ministry assured lawmakers on Thursday that no final decision has been made regarding fuel price deregulation, amid mounting pressure from petroleum dealers threatening a nationwide strike. The government has promised to consult all stakeholders, including dealers, before proceeding.
Petroleum Dealers’ Concerns & Strike Threat
- The All-Pakistan Petroleum Dealers Association (APPDA) has set a March 4 deadline for the government to address their concerns.
- APPDA claims dealers were excluded from discussions and demands clarity on profit margins if deregulation is implemented.
- APPDA representatives argue:
- 15,000 dealers have been ignored in policy discussions.
- Deregulation could allow oil companies to cut their margins.
- Lubricant and high-octane fuel prices remain high despite currency fluctuations and global oil price changes.
Government & Regulatory Response
- The National Assembly’s Standing Committee on Petroleum, led by MNA Syed Mustafa Mehmood, directed the Petroleum Ministry to engage with dealers before making a final decision.
- Officials confirmed ongoing debates on whether fuel prices should be revised daily or weekly, but no decision has been finalized.
- OGRA Chairman downplayed the strike threat, calling it a misunderstanding and stating that dealers fear reduced profit margins under deregulation.
- The committee has summoned OGRA officials and APPDA representatives for further discussions.
Gas Sector Developments
- Lawmakers raised concerns over a deal between Sui Southern Gas Company (SSGC) and Jamshoro Joint Venture Limited (JJVL), warning that it could reduce local gas supplies.
- The SSGC managing director acknowledged potential risks, prompting the committee to demand a full briefing in the next session.
Strategic Underground Gas Storage (SUGS) Project Scrapped
- The committee rejected the proposed $1-1.5 billion SUGS project, citing financial infeasibility.
- The Inter State Gas Systems (ISGS) had requested Rs1.713 billion for a feasibility study, but both the Petroleum Ministry and the committee opposed it.
- The Additional Secretary of Petroleum Ministry stated that the project would store only nine LNG cargoes while adding unnecessary costs to imported gas.
Next Steps
- The government will engage with petroleum dealers before any deregulation decision.
- Further discussions between OGRA, APPDA, and lawmakers are scheduled.
- A detailed review of the SSGC-JJVL agreement will take place in the next committee session.
