Pakistan’s alliance of goods transporters has warned it could launch a nationwide strike over soaring fuel costs in another economic pressure that the South Asian country is feeling from the Middle East crisis.
“Transporters across Pakistan should remain prepared; a nationwide strike call can be given at any time,” Malik Shehzad Awan, president of the Pakistan Goods Transport Alliance, said in a statement carried by local media on Friday.
The alliance slammed the Pakistani government’s decision to hike fuel prices in the wake of the return of hostilities in the Middle East and the spike in crude oil prices. The new decision to review and potentially change fuel prices on a daily basis was branded by the alliance as “anti-transport policies” of the federal government.
Many road freight businesses face closure due to the frequent hikes of diesel prices, Awan said.
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Earlier this week, Pakistan started revising gasoline and diesel prices on a daily basis, effective July 21, as international crude prices surged amid the re-escalation in the Middle East.
The Pakistani government claims the new fuel pricing mechanism is more transparent and would allow domestic fuel prices to reflect the price action on international oil markets. However, the road freight industry is revolting against the daily changes and is seeking dialogue with the authorities to address its concerns.
Meanwhile, Pakistan’s refiners are reportedly inquiring traders about potential crude oil supply from the U.S., Nigeria, Singapore, and central Asia, amid the escalating crisis in the Middle East that threatens supply from both the Strait of Hormuz and the Red Sea.
Following a meeting with the federal minister for petroleum and natural resources, who briefed industry representatives on the growing threats to crude oil supply, refiners have intensified efforts to secure cargoes from non-Middle Eastern producers, local outlet The News reported on Wednesday.
By Tsvetana Paraskova for Oilprice.com
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