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In response to soaring oil prices, the Pakistan Petroleum Dealers Association (PPDA) said on Sunday that it will go on a statewide strike beginning July 18, closing down fuel stations across the country.

In a statement, PPDA chairperson Abdul Sami Khan stated that the current rate of petroleum sales could not be sustained. He stated that petrol stations will remain closed beyond July 18 till the margin on petroleum goods was increased.

The declaration came after the PPDA summoned an emergency meeting and agreed that a minimum commission margin of 6% was necessary for the stations to continue to operate.

Officials expressed concern that the present margin of 3.5% was not sustainable.

Yesterday, it was also revealed that demand for petrol and diesel fell by 12% and 16%, respectively, in June 2022 compared to last month, halting a protracted increase in petroleum product sales following the elimination of subsidies and the application of taxes.

After a statewide strike last November, the former Pakistan Tehreek-e-Insaf (PTI) government caved in to the association"s demands. Instead of accepting the PPDA"s demand for a 6% margin - nearly Rs5 per litre on fuel - it was decided to boost the margin on petrol by 99 paisas a litre and 83 paisas per litre on high-speed diesel (HSD). Similarly, the HSD margin was increased from Rs3.30 to Rs4.13 per litre.

It should be mentioned that in June of this year, a major oil industry organisation warned of an impending collapse in the energy supply chain due to the refusal of international banks to accept Letters of Credit (LCs) created by Pakistani banks.

Oil Companies Advisory Council (OCAC) Chairperson Waqar Irshad Siddiqui disclosed in an SOS call that the oil industry was under financial strain, raising the prospect of a breakdown in the country"s energy supply chain.

Additionally, on June 30, the coalition government launched another oil bomb by raising the price of these products by up to Rs18.83 per litre due to the petroleum levy.

Previously, the government charged no petroleum levy or general sales tax on petroleum items to offset the impact of rising global oil prices and the rupee"s devaluation against the dollar.