The All Pakistan Petrol Pumps Owners Association (APPPOA) has postponed its planned nationwide strike following successful negotiations with the federal government.
The Petroleum Dealers Association also supported the decision after receiving assurances that their concerns would be addressed.
Earlier, petroleum dealers had announced a 24-hour nationwide shutdown beginning Thursday. The protest was planned in response to the government’s decision to introduce daily revisions in petroleum product prices.
However, both sides reached an understanding before the strike could begin.
Government Assures Dealers on Margin Issue
Representatives of the petroleum sector said the government committed to resolving the long-standing issue of petroleum dealers’ margins.
They expressed confidence that the matter would be settled within the next two weeks.
APPPOA Information Secretary Nadeem Khan said the strike was deferred after the government assured stakeholders that their demands would receive serious consideration.
He also said petrol pump owners expect the commission issue to be resolved during the same two-week period.
Meanwhile, the new daily fuel pricing mechanism will continue on a trial basis until further consultations are completed.
Cabinet to Review Proposal on Dealers’ Margins
Petroleum Minister Ali Pervaiz Malik said the government had assured dealers that their concerns would be addressed within two weeks.
He added that consultations would continue if any unresolved issues remained after the trial period.
The minister also confirmed that a summary regarding the proposed increase in petroleum dealers’ margins will be presented before the federal cabinet.
In addition, the government will review the daily fuel pricing mechanism in consultation with petroleum sector organizations after the trial concludes.
Government Defends Daily Fuel Pricing System
According to the petroleum minister, the government introduced the daily fuel pricing mechanism to improve transparency and ensure that international price movements are reflected more quickly.
He said the system is also intended to prevent any perception of unjustified profiteering.
Furthermore, Malik stated that any financial benefit generated under the existing pricing formula would be passed on to consumers promptly and transparently.
He also noted that the government has provided targeted subsidies worth billions of rupees since February 28.
In addition, a targeted subsidy mechanism has been developed to support consumers while maintaining market stability.
The minister acknowledged the cooperation of petroleum dealers and other stakeholders in implementing the new pricing system.
Government Highlights Regional Challenges
Speaking about the broader energy landscape, Malik said fluctuations in global petroleum prices remain a major challenge.
He explained that regional tensions have also contributed to market uncertainty.
According to the minister, Prime Minister Shehbaz Sharif, Field Marshal Syed Asim Munir, the interior minister, and the foreign minister are engaged in efforts aimed at maintaining stability and supporting ceasefire initiatives.
He added that the government will continue working within its available fiscal space and existing agreements while consulting stakeholders on future policy decisions.
How the New Daily Fuel Pricing Mechanism Works
The federal government recently introduced a daily fuel pricing framework after receiving approval from Prime Minister Shehbaz Sharif and the federal cabinet.
Under the new system, petrol and high-speed diesel prices are revised every day to better reflect changes in international oil markets.
The Oil and Gas Regulatory Authority (OGRA) determines daily ex-depot prices using the average international market prices recorded during the previous seven days.
Unlike the previous system, OGRA can now notify daily fuel prices without seeking prior approval from the prime minister or the federal government.
However, fuel prices announced on Fridays will remain unchanged on Saturdays and Sundays.
The framework also requires OGRA to publish daily Platts reference prices. At the same time, the petroleum levy cannot exceed the limit approved by the federal cabinet. Any revision to the levy requires approval from the Finance Division.
