ISLAMABAD: The All Pakistan Petrol Pumps Owners Association (APPPOA) has announced a nationwide shutdown of petrol pumps from midnight, following the collapse of negotiations with the federal government over the newly introduced daily petroleum pricing mechanism and long-pending demands regarding dealer commissions.
The announcement came after APPPOA representatives, including Chairman Humayun Khan and Vice Chairman Nauman Ali Butt, held talks with Petroleum Minister Ali Pervaiz Malik. The discussions, which lasted about an hour, ended without any agreement, prompting the association to declare an indefinite strike.
Addressing a press conference, Humayun Khan said petrol pump owners across all four provinces, as well as Gilgit-Baltistan and Azad Kashmir, had presented two key demands to the government: converting dealer commissions into a percentage-based system and withdrawing the daily fuel price revision mechanism in favour of a monthly pricing system.
“Our problems remain unresolved. Dealers across Pakistan are already facing severe financial difficulties, and the daily fuel pricing mechanism has made the situation even worse,” Khan said.
The federal government recently replaced its previous fuel pricing system with a daily review mechanism amid heightened volatility in international oil markets following renewed tensions in the Middle East. Under the new system, fuel prices are updated daily using a seven-day rolling average of international petroleum prices, a move the government says will improve transparency, reduce market distortions and better reflect global price movements.
However, petrol pump owners argue that the system is impractical and financially damaging for retailers operating on narrow profit margins. They claim the mechanism creates uncertainty, allows oil marketing companies (OMCs) to manipulate deliveries during falling prices and shifts financial risks onto dealers.
“The public understands that whether prices increase by Rs100 at once or by Rs5 or Rs10 every day, the burden ultimately falls on consumers,” Khan said, accusing the government of introducing the policy without consulting key stakeholders.
The association also renewed its demand for an increase in dealer commissions, stating that margins have remained unchanged for the past three years despite rising operational costs.
Vice Chairman Nauman Ali Butt confirmed that negotiations with the Petroleum Division failed to produce any positive outcome regarding dealer margins or the daily pricing mechanism. He urged petrol pump owners across the country to fully participate in the strike, saying the shutdown would continue until the association’s demands were accepted.
According to APPPOA, around 15,000 petrol pumps across Pakistan could remain closed if the strike proceeds as planned.
Meanwhile, the Pakistan Goods Transport Alliance has announced its support for the protest. Alliance President Malik Shehzad Awan criticised the government’s daily fuel pricing policy and urged authorities to accept what he described as the legitimate demands of petrol pump owners and petroleum dealers.
He warned that transport operations could also be disrupted if the dispute remains unresolved, adding that transporters, petrol pump owners and petroleum dealers were all facing mounting challenges due to government policies.
The APPPOA further said it is in contact with oil tanker owners, who may also announce a strike, potentially adding to supply chain concerns.
Separately, the Pakistan Petroleum Dealers Association (PPDA) has not yet announced a final decision on joining the strike. While the Petroleum Division claimed discussions with the PPDA were successful and that the association supported the proposed pricing mechanism, PPDA representatives said they had only held preliminary discussions with the Oil and Gas Regulatory Authority (OGRA), which sought additional time to review the dealers’ concerns. The PPDA’s executive committee is expected to decide separately whether to participate in the protest.
The government maintains that the daily pricing mechanism is based on the same seven-day international price averaging formula used previously and is intended to bring Pakistan’s fuel pricing closer to international standards. Petrol pump owners, however, insist the policy threatens the viability of their businesses and have vowed to continue the nationwide shutdown until their demands are addressed.
