Pakistan petrol retailers start nationwide strike as profit margins drop

Pakistan’s petrol retailers began a nationwide strike on Thursday as the main industry body flagged low profit margins, exacerbated by the government’s move to raise taxes and boost revenue under its agreements with the International Monetary Fund.

“This strike is nationwide. This is all over Pakistan and it will be for an indefinite period. We will not make our pumps operational till our demands are met,” Khwaja Asif Ahmed, secretary of information at Pakistan Petroleum Dealers Association, told reporters in Lahore on Wednesday evening.

The country’s Oil and Gas Regulatory Authority (OGRA) has said it would try to curb the impact of the strike, adding that and any disruptions would be met with legal action.

“All oil marketing companies have been advised to ensure uninterrupted oil supplies at retail outlets and OGRA enforcement teams are in-field to ensure the same,” the OGRA’s statement said.

“Anyone involved in oil disruptions causing public inconvenience shall be dealt strictly in accordance with OGRA laws.”

Large crowds of drivers, with their cars and motorbikes, gathered at petrol stations in main cities, including Lahore and Karachi overnight, ahead of the strike which began at 6:00 a.m. local time on Thursday.

The government has said that under an agreement with the IMF struck this month to release around $1 billion of a $6 billion financing facility, it would increase levies to help meet its revenue targets.

Pakistan’s gas station association has said profit margins have already dropped over the last few months as the government previously increased the petroleum levy.

With fuel prices rising several times this year, Pakistan will be continuing to add around 5 Pakistani rupees ($0.0286) to petrol prices every month as part of the petroleum levy under the IMF’s condition until it touches 30 Pakistani rupee hike.

Source: Reuters

Tags: oil, legislation, IMF, price, petroleum products, oil deliveries, gasoline, diesel, , Gas station

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