ISLAMABAD: The All Pakistan Petrol Pumps Owners Association (APPPOA) on Wednesday postponed its planned nationwide strike after successful negotiations with the federal government, while the Petroleum Dealers Association also endorsed the decision.
Petrol pump owners and dealers had earlier announced a 24-hour nationwide shutdown from Thursday in protest against the government’s decision to revise petroleum product prices on a daily basis.
Speaking at a joint press conference with Petroleum Minister Ali Pervaiz Malik, representatives of the petroleum sector said they had received assurances that their concerns would be addressed.
The dealers said the government committed to increasing petroleum dealers’ margins and expressed confidence that the matter would be resolved within the next two weeks.
APPPOA Information Secretary Nadeem Khan said the strike call was deferred after the government assured stakeholders that their demands would be met.
He added that pump owners expected the issue of commissions to be settled within two weeks and added that the daily fuel pricing mechanism would be operated on a trial basis during the same period.
Addressing the press conference, Malik said the government had assured petrol pump owners and dealers that their concerns would be addressed within two weeks, adding that further consultations would be held if outstanding issues remained unresolved.
He said a summary on the proposed adjustment in dealers’ margins would be submitted to the federal cabinet, while the daily fuel pricing mechanism would be reviewed with petroleum sector organisations after the trial period.
The minister said the government wanted to ensure transparency in the pricing system and avoid any perception of unjustified profiteering.
He noted that fuel prices had moved in line with international market trends and said any benefit generated under the existing pricing formula would be passed on to consumers promptly and transparently.
Malik said the government had provided targeted subsidies worth billions of rupees since February 28 and developed a targeted subsidy mechanism to support consumers.
He also acknowledged the role of petroleum dealers and other stakeholders in helping implement the system transparently.
Commenting on broader challenges, the minister said volatility in petroleum prices remained a significant concern, particularly amid rising regional tensions.
He said Prime Minister Shehbaz Sharif, Field Marshal Syed Asim Munir, the interior minister and the foreign minister were engaged in efforts aimed at maintaining stability and supporting ceasefire initiatives.
Malik added that the government would continue to operate within available fiscal space and existing agreements while working with stakeholders to address challenges facing the sector.
Daily fuel pricing framework
The federal government, with the approval of Prime Minister Shehbaz Sharif and the federal cabinet, introduced a new daily fuel pricing mechanism under which petrol and high-speed diesel prices are revised every day to better reflect movements in international oil markets.
Under the framework, the Oil and Gas Regulatory Authority (Ogra) issues daily ex-depot prices based on the average international market prices recorded over the previous seven days.
The mechanism is aimed at improving transparency and ensuring quicker transmission of global price changes to consumers.
The Ogra has been authorised to notify daily fuel prices without seeking prior approval from the prime minister or the federal government. However, prices announced on Fridays remain unchanged on Saturdays and Sundays.
The framework also requires Ogra to publish daily Platts reference prices, while the petroleum levy cannot exceed the limit approved by the federal cabinet. Any revision to the levy rate requires approval from the Finance Division.
