Petrol Pump Owners Seek PM’s Intervention on Daily Pricing
All Pakistan Petrol Pump Owners Association says frequent price revisions are creating inventory losses, cash-flow uncertainty and operational challenges, and has asked the prime minister to introduce a monthly pricing cycle instead.
ISLAMABAD: The All Pakistan Petrol Pump Owners Association (APPPOA) has formally approached Prime Minister Shehbaz Sharif, seeking the replacement of Pakistan’s recently introduced daily petroleum pricing mechanism with a monthly pricing system.
In a letter dated August 29, 2026, addressed to the prime minister, APPPOA Vice Chairman Nouman Ali Butt said petrol pump owners were facing financial and operational difficulties because of frequent changes in petroleum prices. The letter reviewed by Islamabad Tribune argues that the fuel retail business is inventory-based, meaning dealers often purchase and store fuel before selling it to consumers.
Dealers Cite Inventory Losses and Cash-Flow Pressures
According to the association, when dealers purchase fuel at a higher price and the retail price is subsequently reduced, they may have to sell existing stocks at the lower rate, resulting in inventory losses. APPPOA maintains that such losses cannot necessarily be recovered through the fixed per-litre dealer margin.
The association also cited uncertainty in inventory management, cash flow and working capital, arguing that dealers have no control over international oil prices, exchange-rate movements, procurement costs or the timing of price revisions.
APPPOA acknowledged the government’s objective of making domestic petroleum prices more responsive to international market conditions and also welcomed the recent revision in dealer margins. However, it said the margin adjustment did not resolve what it described as the fundamental operational problems arising from daily pricing. The association stressed that it was not seeking an additional concession or burden on consumers or the government, but a more predictable pricing framework.
APPPOA Seeks Monthly Petroleum Pricing
The letter asked the prime minister to direct the Petroleum Division, OGRA and other relevant authorities to replace daily revisions with a monthly petroleum pricing mechanism, which APPPOA says would provide greater certainty for inventory, procurement and cash-flow management.
The demand comes weeks after Pakistan moved towards daily petroleum pricing. The Petroleum Division said in July that the reform was intended to improve transparency, consumer protection and responsiveness to international market conditions. Petroleum Minister Ali Pervaiz Malik had said OGRA would determine prices using a rolling seven-working-day average of international benchmark prices.
The latest APPPOA position has also been independently reported, with the association citing inventory losses and cash-flow pressures in its August 29 communication to the prime minister.
Petroleum Dealers Divided Over Daily Pricing
The issue has previously generated disagreement within the petroleum retail sector. In July, another dealers’ body, the Pakistan Petroleum Dealers Association, publicly supported the daily pricing mechanism during talks with the petroleum minister, while APPPOA had raised objections and held separate negotiations with the government.
As of the association’s latest letter, APPPOA is seeking direct intervention from the prime minister. The letter itself represents the association’s demand and does not indicate that the government has accepted or approved a return to monthly pricing.
