Petroleum dealers threaten strike
The Pakistan Petroleum Dealers Association (PPDA) has rejected the proposed amendment to the Petroleum Act of 1934 that gives additional powers to the civil bureaucracy to monitor petroleum dealers and threatened a nationwide strike.
PPDA Chairman Abdul Sami Khan on Saturday addressed a press conference at the Karachi Press Club alongside other officials, including association leader Malik Khuda Bakhsh.
Khan said that the federal government's amendments to petroleum laws are unacceptable and that the association will adopt a strict stance against changes to the Petroleum Act of 1934.
He said the amendments would grant additional powers to assistant commissioners (ACs) and deputy commissioners (DCs) rather than the regulator, the Oil and Gas Regulatory Authority (OGRA).
"A meeting with the petroleum minister is scheduled for Monday, May 26, to discuss the proposed amendment. If our demands are not met during the meeting, we will proceed with a nationwide strike," he said.
He acknowledged the need for legal changes to curb petroleum smuggling but expressed concern that fuel dealers would end up being unfairly targeted. "Despite assurances from the government, petroleum margins have not been increased for several years," he added.
Malik Khuda Bakhsh said that under the proposed amendment to the Petroleum Act, ACs and DCs would have the authority to investigate any issues involving fuel stations. He said a fuel pump caught fire in the Shah Faisal area of Karachi and it was later discovered that the license had been issued by a DC.
"This is an outdated law, and such powers should rest with a regulator like OGRA," he argued.
Another association member, Raja Waseem, said that such extensive powers should not be handed to the bureaucracy. "Decisions made behind closed doors involve only oil marketing companies (OMCs), while we, the dealers, are excluded," he said.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
3 days ago
- Business Recorder
Ogra holds seminar to initiate comprehensive digital platform
ISLAMABAD: The Oil and Gas Regulatory Authority (Ogra) has conducted a seminar at its headquarters to formally initiate a comprehensive digital platform to fully digitise Pakistan's oil supply chain and is at highly advanced stage of the development. The digitisation will cover the import terminals to the fuel dispensing stations, in a move aimed at eliminating inefficiencies, curbing pilferage, and restoring public trust in the energy sector. In a decisive statement, Ogra Chairman, Masroor Khan, affirmed: 'Pakistan's oil sector must embrace digitisation — fully and without delay. From the point of import to the petrol pump, every link in the supply chain must be digitally monitored. Digitisation is essential not just for operational efficiency, but also for national transparency and integrity.' The Ogra is committed to leading this transition and will not tolerate any obstruction, whether deliberate or due to neglect. 'Let me be clear: any obstruction to digitisation — whether by design, neglect, or vested interest — will be addressed firmly. We cannot allow outdated systems to hold back national progress,' the chairman added. Under this initiative, every component of the oil supply chain — including refineries, storage terminals, tank lorries, Oil Marketing Company (OMC) depots, and retail fuel stations — will be brought under a unified digital oversight framework. This real-time monitoring system will allow for improved tracking, better data integrity, and enhanced regulatory control. OGRA clarified that this initiative is not a proposal, but a regulatory mandate. 'Digitisation is now a legal requirement. Clear timelines and enforceable penalties will ensure compliance. All stakeholders must align with this transformation or face regulatory consequences.' This bold move positions Pakistan among progressive nations that are integrating technology with energy regulation to enhance national efficiency, reduce economic losses, and build public confidence, the Ogra spokesman said. Copyright Business Recorder, 2025
Business Recorder
3 days ago
- Business Recorder
PD in a quandary over less RLNG off-take by power plants
ISLAMABAD: Petroleum Division is still in a quandary over less off-take of Regasified Liquefied Natural Gas (RLNG) by the power plants, which is resulting in rapid saturation of Sui Northern Gas Company Limited (SNGPL) system, well informed sources told Business Recorder. 'SNGPL is continuously reporting reduced RLNG consumption by the power sector against its committed demand of 600 MMCFD for July 2025,' said Deputy Director (Tech Gas) Salahuddin Khan. M/s SNGPL in a letter of July 15, 2025 has reiterated that consumption remained 327 MMFCD on July 16, 2025, with a monthly average of 501-MMFCD, leading to surplus gas accumulation that has pushed system pack beyond critical levels. Short on commitment with SNGPL: Power sector uses 28pc less RLNG SNGPL further highlighted that power consumption on July 17, 2025 was recorded at 300 MMCFD, leading to continued gas accumulation in the system, which is unsustainable. 'If RLNG off-take is not immediately increased and maintained as per demand, the resulting high pressures may disrupt re-gasification at terminals, risking cargo discharge delays and potential financial losses in the form of demurrages and take-or-pay applicability. Alternatively, SNGPL shall be constrained to further curtail supplies from local gas fields,' said Directorate General (Gas) Petroleum Division. According to sources, Power Division has been requested to advise the concerned quarters to increase RLNG off-take as per demand for the month of July 2025 with re-coupment of previously unconsumed volumes to ensure smooth operation of the SNGPL system and to avoid any untoward situation in the national interest. On July 10, 2025, responding to the comments of Minister for Petroleum and Natural Resources Ali Pervaiz Malik on underutilisation of RLNG by the IPPs, Minister for Power, Sardar Awais Ahmad Khan Leghari staunchly defended the Economic Merit Order (EMO), declaring that any attempt to alter it would be a 'grave sin' (Gunnah Kabeera). He urged the Petroleum Division to review Liquefied Natural Gas (LNG) contracts—if necessary—just as the Power Division had done with Independent Power Producers. 'Ali Pervaiz Malik is a close friend, and his concerns are valid if the contracts are flawed,' Leghari said. 'Power plants operate under the EMO, which prioritises electricity generation from the cheapest sources. If RLNG plants don't qualify under EMO, they simply can't be operated,' he further explained. National Electric Power Regulatory Authority (Nepra) has been sharing violations of EMO by the System Operator during the public hearings on FCAs, on the basis of which billions of rupees of NGC (former NTDC) were withheld. However, this exercise has now almost been stopped without any reason. Nepra has directed that the System Operator and NGC must present a comprehensive update that includes covering outages of economic power plants, the resulting financial impact, and reliance on out-of-merit generation. The update should also include the status of identified system constraint, progress made, revised completion timelines and associated financial implications. At a recent meeting on gas issues, the representative of Power Division commented that challenges need to be met and disruptions need to be looked into. The Chair responded that the tactical issues would be discussed later and, presently, the focus needs to be on sustainability of the gas sector and how LNG over supply/ less off-take is affecting it. Secretary Petroleum framed the key issues to be addressed by the Committee, namely rationalisation of gas tariffs (for both indigenous and imported gas), synchronisation of LNG demand with the power sector along with resolution of circular debt within the gas sector. Copyright Business Recorder, 2025
Business Recorder
6 days ago
- Business Recorder
JI to stage sit-ins against ‘sugar mafia' today
LAHORE: Jamaat-e-Islami (JI) Chief Hafiz Naeem-ur-Rehman has announced that the party will stage protest sit-ins across Islamabad and all divisional headquarters today (Sunday) against the exploitative 'sugar mafia' and hike in electricity, gas, and petrol prices. He also declared the launch of 'Give Rights to Balochistan' long march from Quetta on July 25 which will eventually head toward Islamabad. Addressing a press conference in Islamabad on Saturday, Rehman criticized the government's anti-people economic policies and the main opposition parties' passivity. 'When it comes to their personal gains, all factions unite and approve 300 percent raises in their own salaries.' He said the government deceived the people with false claims like a Rs. 7.41 per unit reduction in electricity rates which never materialized. The petrol prices, he added, continue to rise every 15 days despite declining global rates. 'The imposition of the slab system and continued hikes in electricity and gas prices are nothing short of fraud against the public. We demand the end of the slab system and the removal of unjust taxes from electricity bills,' he stated. Rehman lashed out at the sugar mafia, noting that 90 percent of the country's 89 sugar mills are controlled by the ruling parties and influential figures. 'Dealerships are handed to unregistered agents who are protected by every government. Sugar prices have surged from Rs. 140 to Rs. 200 per kg, imposing a heavy burden on the people,' he said. He revealed that gas wells were deliberately shut down on instructions from the Petroleum Division, resulting in a $1.5 billion loss to the national economy. He said the past governments entered RLNG agreements against national interests. The JI chief stressed the need for aggressive diplomatic efforts on Kashmir, referencing the July 19, 1947 resolution passed at the residence of Sardar Ibrahim Khan for accession to Pakistan. 'Today, Kashmiris worldwide are observing 'Youm-e-Ilhaq-e-Pakistan'. Pakistan must push forward a bold Kashmir policy. Any international mediation that undermines the wishes of the Kashmiri people is unacceptable,' he emphasized. Hafiz Rehman reiterated that India and the US are behind the unrest in Balochistan. He emphasised empowering local populations and announced that grand jirgas would soon be held in both Khyber Pakhtunkhwa and Balochistan to address regional grievances. Regarding the upcoming 'Balochistan Rights March', he warned the government against obstructing it: 'If the government tries to stop this peaceful democratic movement, it will bear responsibility for the consequences.' The JI leader also raised concerns about lawlessness in Sindh's riverine areas, pointing to the unhindered flow of weapons, the abduction of minority traders, and the PPP's failure to maintain law and order. Calling on the youth to join Jamaat-e-Islami, he remarked that the ruling elite and opposition are united only in safeguarding their own interests, showing indifference to the struggles of ordinary citizens. Criticizing the recent decision on reserved seats, he termed it a murder of justice, stating that even the affected parties failed to raise their voices and instead became part of the deal. Copyright Business Recorder, 2025
