Key Takeaways
- All Pakistan Petrol Pumps Owners Association (APPPOA) announces nationwide strike starting Wednesday night.
- Negotiations with government over daily fuel pricing failed, leaving dealers with no option but to go on indefinite strike.
- Dealers demand monthly pricing and increased commission, citing severe financial challenges.
The All Pakistan Petrol Pumps Owners Association (APPPOA) has announced a nationwide strike starting from midnight Wednesday, affecting around 15,000 petrol pumps across Pakistan. This decision comes after failed negotiations with the government over daily petroleum pricing mechanisms.
Speaking to the media following a meeting with the government’s team led by Petroleum Minister Ali Pervaiz Malik, APPPOA representatives highlighted their dissatisfaction with the proposed system. Humayun Khan, Chairman of APPPOA, stated that the government's plan to revise fuel prices on a daily basis was 'unacceptable' and unworkable for dealers.
Nauman Ali Butt, Vice Chairman of APPPOA, elaborated that their main demand is for monthly pricing rather than daily adjustments. He also mentioned that their longstanding request for an increase in dealer commission has remained unaddressed for the past three years. The commission has been frozen since 2019.
Khan further explained that petrol pump owners are already facing severe financial challenges due to various pressures from the Oil and Gas Regulatory Authority (Ogra), oil marketing companies (OMCs), and government policies. He highlighted how the daily pricing mechanism creates confusion, benefits OMCs by allowing them to delay deliveries when prices drop, and results in advance billing.
The APPPOA chairman also pointed out that it is 'ironic' that a major decision was taken without consulting key stakeholders, reflecting the exclusion of small private businesses from policymaking. He emphasized the need for the government to reconsider the daily fuel pricing system and increase dealers’ commissions.
Separately, the Pakistan Petroleum Dealers Association (PPDA) has also announced it will decide on Wednesday whether to join the strike after a meeting of its executive body. PPDA Senior Adviser Malik Khuda Bukhsh told Dawn that daily fuel pricing is 'not possible and unacceptable'.
Interestingly, a statement issued by the Petroleum Division claimed successful talks with the PPDA. However, Khuda Bukhsh stated that the petroleum minister had asked them to meet Ogra leadership and explain their viewpoint. The PPDA team later informed Ogra of the challenges they face.
Khuda Bakhsh added that the Ogra team acknowledged the decision to introduce daily pricing was taken in haste and sought dealers' input. He urged the association to remain patient instead of considering a strike, stating that the executive committee would meet on Wednesday to decide their next steps.
The government's plan to revise petroleum prices on a daily basis is 'unacceptable to petrol pump dealers and unworkable'.
Nauman Ali Butt, Vice Chairman of APPPOA, Vice Chairman of APPPOA
The APPPOA has decided to observe a nationwide strike from midnight on Wednesday.
Humayun Khan, Chairman of APPPOA, Chairman of APPPOA
