Petrol pump owners in Pakistan threaten strikes over daily fuel pricing mechanism

• Association’s one group defers strike after govt assurance• APPPOA president claims govt talks ended without breakthrough, announces indefinite strike• Govt promises to review daily fuel pricing after two-week trial• Assures consultation on dealers’ margins, other demands ISLAMABAD: The government on Wednesday succeeded in dividing the All Pakistan Petroleum Pump Owners Association (APPPOA) and persuading one group to postpone its strike call for two weeks with a promise to resolve its genuine issues through mutual consultations. On the other hand, the chairman and vice chairman of the same association insisted that the talks had failed and that they would go ahead with the strike from midnight, sharing footage of closed petrol pumps. A day earlier, the association had announced that it would shut down around 15,000 petrol stations nationwide from Wednesday night after the first round of negotiations with the government over daily petroleum pricing and dealers’ commission failed. Besides opposing daily pricing, dealers are demanding an eight per cent commission, which now works out at about Rs25 per litre instead of the existing Rs8.64 on both petrol and diesel, as well as an end to supply quotas imposed by oil marketing companies. The government team, led by Petroleum Minister Ali Pervaiz Malik, Petroleum Secretary Hamid Yaqoob Shaikh and acting chairman of the Oil & Gas Regulatory Authority (OGRA) Nabeel Awan, did not make any firm commitment on the specifics of any of the three demands but promised to make joint efforts to ensure a transparent and fair system. After the talks on Wednesday evening, APPPOA Information Secretary Nadeem Aziz Khan announced that the strike call for the shutdown of petrol pumps had been postponed for two weeks to save the public from hardship, following assurances from the petroleum minister. He said the minister had promised that the government would implement daily petroleum pricing “for two weeks on a trial basis” and review after a fortnight the “merits and demerits” it might bring. Khan said the government had also promised to increase dealers’ margins, which have remained unchanged since 2022. The assurance, he added, was also put in writing after a “detailed session” with the petroleum minister on the issues faced by the association. Conspicuously, APPPOA Chairman Humayun Khan and Vice Chairman Noman Butt, who had announced the strike call a day earlier, slipped quietly out of the Petroleum Division after the talks. Noman Butt, who had been sharing the association’s views and decisions, could not be reached on his phone, while Humayun Khan, in a recorded message, asked dealers to stay united and continue the strike as their demands had not been met. In a press release, APPPOA chairman insisted that the negotiations with the government remained inconclusive and failed to produce any meaningful outcome. “The government did not accept any of our legitimate demands, nor did it present any practical progress. Therefore, the association stands by its previously announced decision to begin an indefinite nationwide strike,” he added. Nadeem Khan noted that the association had made no illegitimate demands but was seeking a legitimate right that had remained pending since 2022. The petroleum minister said that after another round of negotiations with the APPPOA, it had been decided to defer the strike call as the government assured stakeholders that their grievances would be addressed within the next two weeks. He said the issue of dealers’ margins would be resolved through consultations with all stakeholders, adding that a summary in this regard would be submitted to the federal cabinet for consideration. He further said that the government would review the daily fuel pricing mechanism with stakeholders from the petroleum sector after two weeks. Informed sources said the minister told dealers in unequivocal terms that their demand for an almost threefold increase in dealers’ margins — from Rs8.64 per litre to Rs25 — was totally unreasonable and, therefore, unacceptable, particularly when fuel prices were already affecting consumers. However, he said, a reasonable increase would be allowed, keeping in view the impact of inflation. Malik said OGRA would start publishing fuel prices on its website and that the price breakup would also be provided in Urdu for the sake of transparency. Daily fuel pricing Meanwhile, the Pakistan Business Forum (PBF) opposed any increase in dealers’ margins and called upon the government to end daily fuel pricing, saying it had created problems for the public as well as other stakeholders. PBF Chief Organiser Ahmad Jawad said Pakistan was already grappling with high inflation, escalating business costs and prolonged economic uncertainty, and that any disruption in the supply of petroleum products would not only cause severe inconvenience to the public but also adversely affect industrial production, trade, transportation, agriculture and the country’s entire supply chain. The PBF chief organiser also called upon the federal government to immediately withdraw its decision to introduce daily revisions in petroleum prices. Published in Dawn, July 23rd, 2026

The All Pakistan Petroleum Pump Owners Association (APPPOA) has deferred its nationwide strike call for two weeks after negotiations with the petroleum minister. A day earlier, the association announced a nationwide strike from Wednesday night after negotiations with the government over daily petroleum pricing failed. Addressing the media, Petroleum Minister Ali Pervaiz Malik said that after another round of negotiations with the APPPOA, it was decided to defer the strike call after the government assured stakeholders that their grievances would be addressed within the next two weeks. “From February 28 till today, the government has used around Rs100 billion to mitigate the impact of rising fuel prices and initiated a subsidy scheme for the most vulnerable section of the society,” said Malik while referring to the actions taken by the government following the outbreak of the Iran-US war. “The clouds of war are again building in the region and fuel prices are rising,” said Malik, adding that he discussed the prevailing situation with APPPOA officials and they “supported“ the government in its efforts. The minister said the country’s top civil and military leadership was in talks with Iranian and US government officials to work towards a resolution of the conflict. The petroleum minister, referring to the grievances of petrol pump owners, said the issue of dealers’ margins would be resolved through consultations with all stakeholders, adding that a summary in this regard would be submitted to the federal cabinet for consideration. He further said that the government would review the daily fuel pricing mechanism with stakeholders from the petroleum sector after two weeks. Last week, the minister announced that fuel prices would now be fixed on a daily basis due to fluctuations in international market prices following renewed hostilities between Iran and the US. During the press conference, Malik said the Oil and Gas Regulatory Authority (Ogra) would start publishing fuel prices on its website from that day and that a breakup of the same would also be provided in Urdu for the sake of transparency. More to follow

ISLAMABAD: The All Pakistan Petrol Pumps Owners Association (APPPOA) on Tuesday announced a nationwide strike from Wednesday night after negotiations with the government over daily petroleum pricing failed. Speaking to the media after a meeting with the government’s team, led by Petroleum Minister Ali Pervaiz Malik, APPPOA representatives said their hour-long talks over the daily fuel pricing mechanism had “failed” to reach an agreement and that they were therefore left with no option but to go on an indefinite strike, as it was an issue of survival for them. The APPPOA delegation comprised Chairman Humayun Khan, Vice Chairman Nauman Ali Butt and other officials. Speaking to the media, Butt said the government’s plan to revise petroleum prices on a daily basis was “unacceptable to petrol pump dealers and unworkable”. He said their main demand was that fuel prices should be determined on a monthly basis, adding that their longstanding demand for an increase in dealer commission had also remained pending, as the commission had remained frozen for the past three years. Meanwhile, Khan said petrol pump owners were already facing “severe financial challenges” due to various pressures from the Oil and Gas Regulatory Authority (Ogra), oil marketing companies (OMCs) and government policies. “The daily pricing mechanism created confusion and destroyed our businesses already running at thin margins,” he said, adding that the daily mechanism favoured OMCs who could delay deliveries in case of declining prices and book upliftment with advance billing. Khan said it was “ironic” that the government had taken a major decision without consulting key stakeholders, reflecting the exclusion of small private businesses from policymaking and a lack of understanding of ground realities. “The APPPOA has decided to observe a nationwide strike from midnight on Wednesday, which means around 15,000 petrol pumps across Pakistan will remain closed on Thursday,” he said. The APPPOA chairman demanded that the government reconsider the daily fuel pricing system, increase dealers’ commissions and include petrol pump owners in policy consultations. Separately, the Pakistan Petroleum Dealers Association (PPDA) also announced that it would decide on Wednesday whether to go on strike after a meeting of its executive body. PPDA Senior Adviser Malik Khuda Bukhsh told Dawn that daily fuel pricing was “not possible and unacceptable”. Interestingly, a statement issued by the Petroleum Division said its talks with the PPDA had been successful. However, Khuda Bukhsh said the petroleum minister had asked them to meet the Ogra leadership and explain their viewpoint. He said the PPDA team later informed Ogra of the challenges. According to him, the Ogra team acknowledged that the decision to introduce daily pricing had been taken in haste and sought the dealers’ input. Khuda Bakhsh added that the dealers’ demands were explained in detail to Ogra, which sought seven days to convey those concerns to the government and get back to the PPDA, urging the association to remain patient instead of considering a strike. “The PPDA team told Ogra that the association’s executive committee would meet on Wednesday to decide whether to go on strike, as the delegation was not authorised to make such a decision,” he said. The Petroleum Division’s statement, on the other hand, claimed that the PPDA delegation appreciated the government’s effective management of petroleum product supplies during the challenges arising from the Strait of Hormuz crisis and “assured the minister of the association’s full support for the government’s policy”. The minister briefed the delegation on Monday about the transition from weekly to daily petroleum price announcements, explaining that the new mechanism would be based on a seven-day rolling average of international prices. He emphasised that the previous weekly pricing mechanism had also been based on a seven-day average of international prices and that the new system simply updated prices on a daily basis to enhance transparency, reduce market distortions and better reflect international price movements. “The PPDA expressed its support for the proposed mechanism,” the statement claimed. The PPDA, however, published an appeal in newspapers calling on the government to “review” the 24-hour price adjustment mechanism.

ISLAMABAD: The All Pakistan Petrol Pumps Owners Association (APPPOA) on Tuesday announced a nationwide strike from Wednesday night after negotiations with the government over daily petroleum pricing failed. Speaking to the media after a meeting with the government’s team, led by Petroleum Minister Ali Pervaiz Malik, APPPOA representatives said their hour-long talks over the daily fuel pricing mechanism had “failed” to reach an agreement and that they were therefore left with no option but to go on an indefinite strike, as it was an issue of survival for them. The APPPOA delegation comprised Chairman Humayun Khan, Vice Chairman Nauman Ali Butt and other officials. Speaking to the media, Butt said the government’s plan to revise petroleum prices on a daily basis was “unacceptable to petrol pump dealers and unworkable”. He said their main demand was that fuel prices should be determined on a monthly basis, adding that their longstanding demand for an increase in dealer commission had also remained pending, as the commission had remained frozen for the past three years. Meanwhile, Khan said petrol pump owners were already facing “severe financial challenges” due to various pressures from the Oil and Gas Regulatory Authority (Ogra), oil marketing companies (OMCs) and government policies. “The daily pricing mechanism created confusion and destroyed our businesses already running at thin margins,” he said, adding that the daily mechanism favoured OMCs who could delay deliveries in case of declining prices and book upliftment with advance billing. Khan said it was “ironic” that the government had taken a major decision without consulting key stakeholders, reflecting the exclusion of small private businesses from policymaking and a lack of understanding of ground realities. “The APPPOA has decided to observe a nationwide strike from midnight on Wednesday, which means around 15,000 petrol pumps across Pakistan will remain closed on Thursday,” he said. The APPPOA chairman demanded that the government reconsider the daily fuel pricing system, increase dealers’ commissions and include petrol pump owners in policy consultations. Separately, the Pakistan Petroleum Dealers Association (PPDA) also announced that it would decide on Wednesday whether to go on strike after a meeting of its executive body. PPDA Senior Adviser Malik Khuda Bukhsh told Dawn that daily fuel pricing was “not possible and unacceptable”. Interestingly, a statement issued by the Petroleum Division said its talks with the PPDA had been successful. However, Khuda Bukhsh said the petroleum minister had asked them to meet the Ogra leadership and explain their viewpoint. He said the PPDA team later informed Ogra of the challenges. According to him, the Ogra team acknowledged that the decision to introduce daily pricing had been taken in haste and sought the dealers’ input. Khuda Bakhsh added that the dealers’ demands were explained in detail to Ogra, which sought seven days to convey those concerns to the government and get back to the PPDA, urging the association to remain patient instead of considering a strike. “The PPDA team told Ogra that the association’s executive committee would meet on Wednesday to decide whether to go on strike, as the delegation was not authorised to make such a decision,” he said. The Petroleum Division’s statement, on the other hand, claimed that the PPDA delegation appreciated the government’s effective management of petroleum product supplies during the challenges arising from the Strait of Hormuz crisis and “assured the minister of the association’s full support for the government’s policy”. The minister briefed the delegation on Monday about the transition from weekly to daily petroleum price announcements, explaining that the new mechanism would be based on a seven-day rolling average of international prices. He emphasised that the previous weekly pricing mechanism had also been based on a seven-day average of international prices and that the new system simply updated prices on a daily basis to enhance transparency, reduce market distortions and better reflect international price movements. “The PPDA expressed its support for the proposed mechanism,” the statement claimed. The PPDA, however, published an appeal in newspapers calling on the government to “review” the 24-hour price adjustment mechanism.