Dealers Give Government 72-Hour Deadline
Petroleum dealers across Pakistan have threatened to shut petrol pumps nationwide from 6am on Saturday, August 15, if the government fails to resolve their demands.
The Pakistan Petroleum Dealers Association announced the decision on Tuesday after a meeting involving representatives from across the country.
PPDA Chairman Malik Khuda Baksh said the association had given the federal government a 72-hour ultimatum.
He warned that fuel stations would remain closed for an indefinite period if negotiations failed to produce an agreement.
The association says around 14,000 petroleum dealers are putting pressure on its leadership to take stronger action.
According to Khuda Baksh, the government had previously been given two weeks to address the dealers’ concerns.
That deadline has now expired without what the association considers a satisfactory solution.
The PPDA said it had informed the government through a formal letter that frustration among fuel station operators was increasing.
Dealers had previously postponed a planned shutdown after talks with Petroleum Minister Ali Pervaiz Malik.
Khuda Baksh said the earlier strike was suspended because the association believed the government was serious about resolving the dispute.
However, dealers now say negotiations have failed to deliver the required progress.
Petrol Dealers Demand Eight Percent Profit Margin
The most important demand involves the profit margin received by fuel station operators.
The PPDA wants the dealer margin increased to eight percent.
Dealers argue that their existing earnings are no longer sufficient to cover rising electricity costs, employee salaries, property expenses and other operating costs.
The government acknowledged this demand during talks with the PPDA on July 20.
An official government statement confirmed that dealers requested an increase to eight percent and that Petroleum Minister Ali Pervaiz Malik promised further discussions with the Oil and Gas Regulatory Authority.
The association is also seeking changes to the government’s new petroleum pricing mechanism.
The government has been moving towards a daily fuel pricing system based on a seven-day rolling average of international petroleum prices.
Officials say the system is designed to improve transparency and reduce hoarding and market manipulation.
Dealers, however, have raised concerns about how the system affects their businesses.
They are demanding greater representation in policy decisions involving oil marketing companies and fuel retailers.
PPDA Vice Chairman Tariq Hasan said the unresolved issues also include the dealers’ commission, changes to the 24-hour pricing system and the company allocation policy.
He said the deadline will expire at 6am on August 15.
Nationwide Fuel Supply Could Face Major Disruption
If the threatened shutdown goes ahead, it could affect fuel availability across Pakistan.
The PPDA says petrol stations will remain closed until its demands are accepted.
However, the shutdown is not yet final, as the government still has time to reach an agreement with dealers before Saturday morning.
The warning comes as Pakistan is already facing disruption in the transport sector.
Goods transporters are continuing a nationwide strike after negotiations with federal and Sindh government representatives failed to produce a breakthrough.
The simultaneous possibility of a petrol pump shutdown could increase pressure on transport networks, businesses and supply chains if both disputes continue.
The latest dispute follows several rounds of negotiations between petroleum dealers and government officials over margins and pricing reforms.
During the July meeting, the government assured dealers that their concerns would be considered as Pakistan moves towards a more market-driven petroleum pricing system.
Attention will now focus on negotiations during the next 72 hours.
A successful agreement could prevent the shutdown.
If talks fail, the PPDA says petrol pumps across Pakistan will begin closing indefinitely from August 15.
