The Pakistan Petroleum Dealers Association (PPDA) stated on Thursday that it will shut down petrol stations nationwide on July 22 in protest of low-profit margins caused by the country's inflation issue.
The association, which also claims to have more than 10,000 members, said, "We will close down all petrol stations in Pakistan."
The PPD said they informed the petroleum minister about their issues but made no gains.
According to the official statement, operators' operations have been negatively impacted by interest rates and inflation.
It said that because Iranian petroleum was being smuggled into the country, sales had dropped by 30%.
According to Abdul Sami Khan, the association's leader, "about 8,000 to 9,000 (operators) represented by us will be closed on July 22."
According to the association, the supply of petrol would be halted until the demands were satisfied.
According to the official statement, operators' operations have been negatively impacted by interest rates and inflation.
The association said the supply of petrol will remain suspended until the demands are met.
With the national rate reaching 29.4% in June after reaching a record high of 38% in May, Pakistan is grappling with a declining currency and a protracted era of inflation.
Due to the high cost of doing business, which has caused financial difficulty, Pakistan's oil sector earlier in May requested a Rs 12/liter margin on high-speed diesel (HSD) and Mogas (petrol) for oil marketing companies (OMCs).
In the Petroleum Review for April 30, 2022, the OMC's margin on HSD was Rs6.50/liter vs. Rs6/liter for Mogas. Along with the OMCs' profit, dealers demanded a Rs 7/litre margin on HSD and Mogas.
Due to rising operating costs, the oil sector has been dealing with serious problems since last year. The causes range from rising international gasoline prices and currency fluctuations to higher interest rates (resulting in inventory holding costs of about Rs 3 per liter), credit letter confirmation fees that result in greater demurrages, and a high turnover tax (0.5 percent), among other factors.
The oil organization said that the Economic Coordination Committee (ECC) decision of October 31, 2022, which decreased the margin for HSD and Mogas to Rs 6 per liter for the present year, is insufficient and requires immediate revision.
The association, which also claims to have more than 10,000 members, said, "We will close down all petrol stations in Pakistan."
The PPD said they informed the petroleum minister about their issues but made no gains.
According to the official statement, operators' operations have been negatively impacted by interest rates and inflation.
It said that because Iranian petroleum was being smuggled into the country, sales had dropped by 30%.
According to Abdul Sami Khan, the association's leader, "about 8,000 to 9,000 (operators) represented by us will be closed on July 22."
According to the association, the supply of petrol would be halted until the demands were satisfied.
According to the official statement, operators' operations have been negatively impacted by interest rates and inflation.
The association said the supply of petrol will remain suspended until the demands are met.
With the national rate reaching 29.4% in June after reaching a record high of 38% in May, Pakistan is grappling with a declining currency and a protracted era of inflation.
Due to the high cost of doing business, which has caused financial difficulty, Pakistan's oil sector earlier in May requested a Rs 12/liter margin on high-speed diesel (HSD) and Mogas (petrol) for oil marketing companies (OMCs).
In the Petroleum Review for April 30, 2022, the OMC's margin on HSD was Rs6.50/liter vs. Rs6/liter for Mogas. Along with the OMCs' profit, dealers demanded a Rs 7/litre margin on HSD and Mogas.
Due to rising operating costs, the oil sector has been dealing with serious problems since last year. The causes range from rising international gasoline prices and currency fluctuations to higher interest rates (resulting in inventory holding costs of about Rs 3 per liter), credit letter confirmation fees that result in greater demurrages, and a high turnover tax (0.5 percent), among other factors.
The oil organization said that the Economic Coordination Committee (ECC) decision of October 31, 2022, which decreased the margin for HSD and Mogas to Rs 6 per liter for the present year, is insufficient and requires immediate revision.