Petrol Pump Owners Announce Nationwide Strike After Talks With Govt Over Daily Pricing Fail

Petrol Pump Owners Announce Nationwide Strike After Talks With Govt Over Daily Pricing Fail
ISLAMABAD — The All Pakistan Petrol Pumps Owners Association (APPPOA) has announced an indefinite nationwide shutdown set to take effect from Wednesday midnight, following a complete breakdown in negotiations with the federal government over a proposed daily fuel pricing mechanism.
The strike threatens to close nearly 15,000 petrol stations across the country, potentially paralyzing public transport and private logistics.
Breakdown in Negotiations
The decision came after an hour-long meeting between representatives of the APPPOA—led by Chairman Humayun Khan and Vice Chairman Nauman Ali Butt—and the government’s team, headed by Petroleum Minister Ali Pervaiz Malik.
The primary bone of contention remains the government’s recently introduced policy to adjust fuel prices on a daily basis based on a seven-day average of international market trends.
“The daily pricing mechanism has created extreme confusion and destroyed our businesses, which are already operating on razor-thin margins. It heavily favors Oil Marketing Companies (OMCs) at the expense of small dealers.” — Humayun Khan, Chairman, APPPOA
Key Demands of the Dealers
The association emphasized that the decision to force a daily pricing model was taken without consulting local stakeholders and small business owners. Their primary demands include:
Reversion to Monthly Pricing: Dealers are urging the government to scrap daily or short-term pricing revisions and return to a monthly pricing schedule to maintain stability.
Revision of Dealer Commissions: The association highlighted that dealer commission margins have remained frozen for the last three years despite rising operational costs and inflation.
Percentage-Based Margins: Dealers are advocating for a shift from fixed-rupee commissions to a flexible 8% percentage-based margin system.
Government Standpoint & Industry Division
While the government maintains that the daily mechanism enhances market transparency and reduces distortions tied to international market volatility, dealers argue that it creates inventory loss risks during price dips.