Petrol Pumps Across Pakistan to Shut as Dealers Launch Indefinite Strike

ISLAMABAD: Fuel supplies across Pakistan are likely to face significant disruption from midnight tonight as petroleum dealers announced an indefinite nationwide strike, with around 15,000 petrol pumps expected to suspend operations after negotiations with the federal government failed to produce a breakthrough.

The decision followed talks between representatives of the All Pakistan Petrol Pumps Owners Association (APPPOA), the Pakistan Petroleum Dealers Association (PPDA) and a government delegation led by Federal Minister for Petroleum Ali Pervaiz Malik. Although the petroleum minister and the Chairman of the Oil and Gas Regulatory Authority (OGRA) requested seven days to review the dealers’ demands, the associations decided to proceed with the strike.

Dealers’ Key Demands

The dealers have placed three key demands before the government.

They are seeking:

• An increase in the dealers’ sales margin from the current Rs8.64 per litre to Rs24 per litre, arguing that the existing commission no longer covers rising operational costs, including electricity bills, salaries, rent and taxes.
• The abolition of the quota system imposed by Oil Marketing Companies (OMCs), saying it restricts fuel supplies to retail outlets and hampers business operations.
• Retention of the monthly fuel pricing system instead of the government’s proposed daily petroleum pricing mechanism, arguing that daily price revisions would create uncertainty and operational difficulties for petrol pump owners.

Dealers Oppose Daily Pricing Mechanism

APPPOA Vice Chairman Nauman Ali Butt termed the proposed daily pricing mechanism “not workable,” saying the association’s principal demand was for monthly fuel price revisions. He added that dealers were also seeking an increase in their commission, which had remained frozen for the past three years despite a significant rise in operating costs.

APPPOA Chairman Humayun Khan said petrol pump owners were already grappling with mounting financial pressures due to regulatory requirements imposed by OGRA, Oil Marketing Companies, and government policies He warned that the proposed daily pricing mechanism would create uncertainty and further strain dealers already operating on narrow profit margins.

He further alleged that the proposed mechanism would favour Oil Marketing Companies (OMCs) by enabling them to delay fuel deliveries when prices were expected to decline while continuing to bill dealers in advance. Such a practice, he claimed, would transfer the financial burden to petrol pump owners and further undermine the sustainability of their businesses.

Government Seeks More Time

The government, however, remained hopeful that the issue could be resolved through dialogue. During the meeting, Petroleum Minister Ali Pervaiz Malik and OGRA Chairman Masroor Khan requested the dealers to allow seven days for consultations and a detailed review of their demands.

The dealers, however, declined the request, maintaining that their longstanding concerns had gone unresolved despite repeated assurances and confirming that the nationwide strike would commence from midnight.

Fuel Supply Disruptions Expected

With around 15,000 petrol pumps expected to participate, the strike is likely to disrupt fuel supplies, transportation, logistics, and commercial activity across the country if no agreement is reached.

Long queues were reported at filling stations in several cities on Tuesday evening as motorists rushed to refuel ahead of the planned shutdown.