Petrol pump owners announce nationwide strike after talks over daily pricing fail

Pakistan Petrol Pump Owners Call Off Strike After Government Assurances

ISLAMABAD — Pakistan's petroleum dealers have called off a planned nationwide strike after the government agreed to review the daily fuel pricing mechanism and address long-standing demands over dealers' commissions. The decision came after hours of negotiations between the All Pakistan Petroleum Pump Owners Association (APPPOA) and a government team led by Petroleum Minister Ali Pervaiz Malik.

The strike, which had been announced for Wednesday night, was suspended for two weeks after the government assured stakeholders that their grievances would be addressed within that period. According to Petroleum Minister Malik, the government would submit a summary to the federal cabinet regarding dealers' margins and would review the daily pricing mechanism with stakeholders from the petroleum sector after the two-week trial period.

"The government has assured that the issue of dealers' margins would be resolved through consultations with all stakeholders," Malik said, adding that a summary in this regard would be moved to the federal cabinet for consideration.

The development comes amid a split within the APPPOA, with one faction agreeing to the deferment while another insisted that negotiations had failed and vowed to proceed with the strike. APPPOA Chairman Humayun Khan and Vice Chairman Nauman Ali Butt were reported to have said that talks with the government had ended without a breakthrough and that they would go ahead with the shutdown from midnight.

However, APPPOA Information Secretary Nadeem Aziz Khan announced the postponement of the strike call, saying the decision was made "to save the public from hardship" following assurances from the petroleum minister.

The dispute centers on the government's recent shift to daily petroleum pricing, which dealers say is "unacceptable and unworkable." They argue that the daily mechanism creates confusion, favors oil marketing companies (OMCs), and adds to the financial challenges faced by pump owners, who operate on thin margins. Dealers have also been demanding an increase in their commission, which has remained frozen at Rs8.64 per litre for the past three years, despite an earlier government approval to raise it to Rs9.98 per litre in two phases by June 2026. That increase was withheld by the federal cabinet, pending complete digitalization of fuel stocks and sales.

During Thursday's strike call, most fuel stations remained open in urban and semi-urban areas across the country, according to reports from Lahore, Faisalabad, Multan, and other major cities. However, around 70 per cent of pumps were closed in Peshawar, and there were reports of closures in rural areas and along the Grand Trunk Road.

A Lahore-based pump owner said, "All pump owners [nearly 450] in Lahore rejected the strike call given by one group of the petroleum dealers' association. Therefore, they kept their pumps open as usual." He added, "There are many groups within the association. Everyone speaks his own words."

The government, meanwhile, has highlighted its efforts to mitigate the impact of rising fuel prices amid regional tensions. Petroleum Minister Malik noted that since February 28, the government had used around Rs100 billion to cushion fuel price increases and had initiated a subsidy scheme for the most vulnerable segments of society. He also mentioned that the country's top civil and military leadership was in talks with Iranian and US officials to resolve the conflict.

Key Claims

• The APPPOA announced a nationwide strike from Wednesday night after negotiations over daily petroleum pricing failed.
• The government's daily pricing plan was described by dealers as "unacceptable" and "unworkable."
• Dealers demanded monthly fuel price determinations and an increase in commissions, which had been frozen for three years.
• The strike was later called off for 15 days after the government agreed to review daily pricing and increase dealers' commissions.
• The government assured that grievances would be addressed within two weeks.
• Dealers' margins would be resolved through consultations with all stakeholders.
• The government agreed to review the daily pricing mechanism with stakeholders after a two-week trial.
• The APPPOA deferred its strike call for two weeks after negotiations with the petroleum minister.
• Some reports indicated the government succeeded in dividing the APPPOA and persuading one group to postpone the strike.
• APPPOA Chairman and Vice Chairman insisted that talks had failed and that they would go ahead with the strike.