KARACHI: Pakistan Petroleum Dealers Association (PPDA) Chairman Abdul Sami Khan has expressed serious concerns over the amendment to the Petroleum Act 1934, followed by the rising smuggling of petroleum products and a network of illegal petrol pumps.

Addressing a press conference at the Karachi Press Club (KPC) on Saturday along with PPDA members, he said one of the main amendments relates to granting unchecked authority to the assistant and deputy commissioners to inspect and seal petrol pumps, which would lead to corruption.

He said this is not just a technical revision but a fundamental and alarming shift that endangers the country’s petroleum sector’s operational freedom, sustainability and security.

He warned that this could have far-reaching and damaging consequences for dealers nationwide, adding that the language and the intent of the amendment bill, presented in the National Assembly without taking stakeholders in confidence, are deeply troubling.

Association threatens shutdown if govt fails to meet their demand

He said the ongoing smuggling of petroleum products has remained an unresolved threat to the legitimate petroleum trade.

Mr Sami said the continued operation of illegal petrol stations, especially near the border areas, needs immediate and decisive action from the concerned authorities.

He said before the media talk, the PPDA met with Oil and Gas Regulatory Authority (Ogra) Chairman Masroor Khan.

He said the Ogra chief was informed about the grievances arising from the proposed amendments. Other key issues, such as the revision of dealers’ commissions, deregulation of petroleum pricing, and smuggling of Iranian petroleum products, were also discussed in the meeting.

He said the PPDA requested an urgent meeting with the federal petroleum minister to address these pressing concerns.

“I am sending a four to five-member PPDA delegation on Monday to meet the petroleum minister to address these serious issues,” he said.

“In case our demands are not met, we have no other choice but to close down pumps till our demands are met,” Mr Sami threatened.

He said the association has been pointing out to the government for the last two years regarding the inflow of smuggled petrol and diesel from Iran, which now holds a market share of 30 per cent.

Published in Dawn, May 25th, 2025