Pakistan petrol pump owners announce nationwide strike after pricing talks fail

Petrol pump owners across Pakistan are set to launch a nationwide strike starting Wednesday night, following the failure of negotiations with the government over daily petroleum pricing. The All Pakistan Petrol Pumps Owners Association (APPPOA) announced the indefinite strike after their meeting with the Petroleum Minister's team yielded no agreement.

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The government’s plan to revise petroleum prices on a daily basis was “unacceptable to petrol pump dealers and unworkable”.

APPPOA representatives stated that the government's proposed daily fuel pricing mechanism is "unacceptable" and "unworkable" for dealers. Their primary demand is for fuel prices to be set on a monthly basis. Additionally, they highlighted a long-standing demand for an increase in dealer commissions, which have remained unchanged for the past three years, exacerbating their financial challenges.

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The daily pricing mechanism created confusion and destroyed our businesses already running at thin margins.

Humayun Khan, chairman of APPPOA, explained that dealers are already struggling with "severe financial challenges" due to pressures from regulatory authorities, oil marketing companies, and government policies. He argued that the daily pricing system creates confusion, erodes their already thin profit margins, and unfairly benefits oil marketing companies. Khan criticized the government for making such a significant decision without consulting key stakeholders, suggesting a disconnect from ground realities and the exclusion of small businesses from policymaking.

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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.

The strike is expected to affect approximately 15,000 petrol pumps across Pakistan. The APPPOA chairman urged the government to reconsider the daily pricing system, raise dealer commissions, and involve petrol pump owners in future policy discussions. Meanwhile, the Pakistan Petroleum Dealers Association (PPDA) is also considering a strike after its executive meeting.

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daily fuel pricing was “not possible and unacceptable”.