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Fuel dealers’ split curbs nationwide shutdown impact

Fuel dealers’ split curbs nationwide shutdown impact

Key Takeaways

  • APPPOA called off the 15-day shutdown after government assurances.
  • Most fuel stations remained open in urban and semi-urban areas.
  • Government agreed to review daily fuel pricing within 15 days.

In a significant development, the All Pakistan Petroleum Pump Owners Association (APPPOA) called off its nationwide shutdown for 15 days after receiving government assurances. The decision came late on Thursday night, following negotiations with the federal cabinet.

Despite the call for a shutdown, most petrol pumps in major urban and semi-urban areas remained operational. In Lahore, Faisalabad, Multan, and other cities, the majority of fuel stations stayed open, while Peshawar saw around 70% of its fuel stations closed. Rural areas reported mixed results, with some closures along the Grand Trunk Road (GT Road).

APPPOA Vice Chairman Noman Butt stated in a video message that the government had agreed to move a summary within 15 days for implementing an increase in dealers' commission approved in December last year. The government also committed to reviewing daily fuel pricing during this period.

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The decision to call off the shutdown was influenced by internal divisions within the petroleum dealers’ association. Humayun Khan, APPPOA Chairman, announced that the group had ended its strike call. However, a rival group of pump owners continued their protest, leading to partial closures in some areas.

In Lahore, nearly 450 petrol pumps rejected the strike call given by one group and remained open as usual. A local pump owner explained, 'Our agreement with oil marketing companies binds us to keep our pumps open round the clock.'

District administrations in southern Punjab reportedly took steps to ensure that petrol pumps did not close. However, former petroleum dealers’ association president Zafar Mazari claimed that 90% of petrol pumps from Karachi to Rahim Yar Khan remained closed on the association’s call.

Malik Khuda Bukhsh, Chief Adviser of the Pakistan Petroleum Dealers Association (PPDA), stated that almost all petrol pumps across the country remained open. He attributed this to the closure of some pumps in Peshawar owned by the rival group that wanted the shutdown.

Federal Minister for Energy Ali Pervaiz Malik assured a PPDA delegation during their meeting that the government would address the dealers' concerns regarding commission and fuel pricing.

Our agreement with oil marketing companies binds us to keep our pumps open round the clock.

A local pump owner, Petroleum dealer

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

Zafar Mazari, President, Rahim Yar Khan District Petroleum Dealers Association