Pakistan fuel owners warn of national shutdown amid oil crisis
Fuel sector urges government to address industry concerns amid rising fuel costs
ISTANBUL
The All Pakistan Petrol Pump Owners Association (APPPOA), representing around 15,000 fuel stations, has warned of a national shutdown if its concerns are not addressed amid the Middle East energy shortage.
In a letter to Federal Minister for Petroleum Ali Pervez Malik on Wednesday, the association’s vice chairman outlined challenges facing the sector, including operational, financial, and pricing issues, as well as sudden changes caused by force majeure, according to the local newspaper The Nation on Thursday.
"We strongly suggest that industry stakeholders be taken onboard while making decisions related to the petroleum sector," said Nouman Ali Butt, while seeking a meeting with the minister "to discuss and address the concerns of almost 14,000–15,000 fuel station owners that need immediate attention."
"In case our concerns are ignored, we would be compelled to shut down operations, which would trigger another fuel crisis in Pakistan. The responsibility for this would fall on the petroleum minister and the Petroleum Division," he added.
Pakistan sourced 81% of its fuel from Gulf countries in 2024, according to The New York Times. However, the Southeast Asian nation has adopted solar power rapidly in recent years, helping it absorb energy shocks.
For nearly a month, the US and Israel have carried out an air offensive on Iran, killing more than 1,340 people, including then-Supreme Leader Ali Khamenei.
Iran has retaliated with drone and missile strikes targeting Israel, as well as Jordan, Iraq, and Gulf countries hosting US military assets, causing casualties and damaging infrastructure while disrupting global markets and aviation.
The Strait of Hormuz has been effectively disrupted since early March. Around 20 million barrels of oil normally pass through it daily, and the disruption has driven up shipping costs and pushed global oil prices higher.
