Peru Oil Strike Deep Dive: Workers vs. Privatization Explained

Peru’s state oil firm Petroperú has hit another rough patch as unions walked out over a government plan to open parts of the company to private investment. The three-day stoppage has turned a boardroom decision into a public fight, with workers warning about job cuts and loss of control over key assets. Fuel prices and supply are political in Peru, so the stakes feel immediate.

Petroperú Strike Puts Privatization Plan Under Spotlight

Workers began a 72-hour strike on January 19, 2026. Union leaders said around 30% of Petroperú’s 2,200 unionised employees joined early, led mainly by the administrative workers’ union. The dispute follows an overhaul approved in late December 2025 that allows private participation and potential leasing of assets such as the upgraded Talara refinery, a flagship project that began operating in 2023. 

Petroperú has depended on state support totaling about $5.3 billion between 2022 and 2024 to avoid bankruptcy, and it said operations remained normal and national fuel supply was secure during the walkout.

What Workers Want, What Officials Are Signaling

Union leader José Luis Saavedra framed the plan as privatisation “in stages” and called for clearer safeguards on staffing and timelines. The labour ministry ruled the strike inadmissible, though the decision was subject to review. The policy direction has also played out online, including this Reuters post on X about bringing private investment into Petroperú.

What Happens Next

Officials have said the first contracts with private firms could arrive as early as June 2026. Petroperú said fuel distribution continued, but unions hinted at tougher action if talks stall.

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