Fuel dealers urge consumers to avoid ‘panic buying’

ISLAMABAD: Amid ongoing negotiations between the Jamaat-i-Islami (JI) and the government to lower the fuel levy, petroleum dealers cautioned consumers against panic buying on Friday, stating that such actions could disrupt the delicate balance between supply and demand. Malik Khuda Baksh, chairman of the Pakistan Petroleum Dealers Association (PPDA), stated that supply and demand were being managed effectively by all parties, including the government, industry, and consumers.

The recent closure of the Iran border has exacerbated the plight of liquefied petroleum gas (LPG) consumers. Baksh warned that consumer behavior, such as long queues at petrol pumps, had historically led to artificial shortages. He recalled the panic that ensued during the US invasion of Afghanistan in 2001, asserting that despite such concerns, petrol and diesel remained readily available.

Baksh clarified that refineries were operating, with crude oil and petroleum products being imported from Gulf nations like Saudi Arabia and Oman. However, he emphasized that the price issue remained a separate matter. Industry projections indicate that diesel demand in November 2026 could reach approximately 750,000 tonnes, driven by agricultural needs.

Local refineries contribute about 70% of diesel supply, though most of the processed crude is imported. Petrol demand is forecasted at around 630,000 tonnes, with local production covering roughly 30% of the nation's consumption. High prices and the off-peak travel season are expected to temper consumption next month. The JI has urged Prime Minister Shehbaz Sharif to announce further public relief during an expected meeting with JI leader Hafiz Naeem, which the group wants to convene "this week."

After discussions with a government delegation, JI Deputy Emir Liaqat Baloch said the party would continue negotiations but would not shun protest. A technical committee, including Finance Minister Bilal Azhar Kayani, JI's Nasrullah Randhawa, and Deputy Secretary Syed Farasat Shah, has been formed to scrutinize the outstanding issues within two to three days.