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Split among fuel dealers blunts impact of pump ‘shutdown’
🇵🇰 Pakistan /Economy & Trade

Split among fuel dealers blunts impact of pump ‘shutdown’

From Dawn · () English

Summarized and contextualized by DistantNews.

At a glance

News Named sources Ongoing story
  • A split among petroleum dealers in Pakistan weakened the impact of a nationwide strike called for Thursday.
  • The All Pakistan Petroleum Pump Owners Association (APPPOA) later called off the strike for 15 days after receiving government assurances.
  • The strike was over an approved increase in dealers' commission, which the government had linked to the digitalization of fuel stocks and sales.

A significant division within Pakistan's petroleum dealers' association largely neutralized a planned nationwide strike on Thursday, with most fuel stations remaining operational. The All Pakistan Petroleum Pump Owners Association (APPPOA) eventually called off the strike for 15 days late Thursday night following government assurances.

All pump owners (nearly 450) in Lahore rejected the strike call given by one group of the petroleum dealers’ association. Therefore, they kept their pumps open as usual.

— An owner of several petrol pumps in LahoreExplaining why most petrol pumps in Lahore remained open despite the strike call.

APPPOA Vice Chairman Noman Butt announced in a video message that the government committed to presenting a summary within 15 days regarding the implementation of an increased dealers' commission, initially approved in December. The government also agreed to review the daily fuel pricing mechanism within the same timeframe. APPPOA Chairman Humayun Khan confirmed the end of the strike call.

There are many groups within the association. Everyone speaks his own words.

— An owner of several petrol pumps in LahoreDescribing the internal divisions within the petroleum dealers' association.

The core issue was the dealers' commission, which the Economic Coordination Committee (ECC) had approved to increase from Rs8.64 to Rs9.98 per liter in two phases by June 2026. However, the federal cabinet had withheld implementation, tying it to the complete digitalization of fuel stocks and sales.

Our agreement binds us not to engage in such activities, as we are required to keep our pumps open round the clock under the agreement with our OMC.

— Another pump ownerStating the reason for rejecting the strike call due to contractual obligations with oil marketing companies.

A rival faction within the association had already distanced itself from the strike, significantly diminishing its potential impact. While some fuel stations in Peshawar reportedly closed, many in major cities like Lahore, Faisalabad, and Multan remained open. Reports indicated closures in some rural areas and along the Grand Trunk Road. Owners cited agreements with oil marketing companies (OMCs) that obligate them to remain open, as well as internal disagreements within the association, as reasons for rejecting the strike call.

I travelled from Karachi to Hyderabad on Thursday. I saw that 90pc of the pumps on GT Road were closed.

— Zafar MazariClaiming widespread closure of petrol pumps despite the association's split.
DistantNews Editorial

Originally published by Dawn. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.

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