Negotiations between the government and the All Pakistan Petrol Pumps Owners Association (APPPOA) over the newly introduced daily petroleum pricing mechanism have officially collapsed.
As a result, petrol pump owners have announced an indefinite nationwide strike starting midnight on July 22 and will continue the strike until their demands are accepted.
Where Does PPDA Stand?
While APPPOA announced an immediate strike call, the Pakistan Petroleum Dealers Association (PPDA), represented by Senior Adviser Malik Khuda Bukhsh, held separate discussions with OGRA.
OGRA officials acknowledged that the rapid transition to daily pricing had posed challenges and requested a 7-day buffer to relay dealer concerns to the federal government. The PPDA executive body is meeting today to take a final vote on whether to join the strike.
What Caused the Breakdown?
The deadlock stemmed from an hour-long meeting between petroleum stakeholders and government representatives led by Petroleum Minister Ali Pervaiz Malik. The government recently shifted to a 24-hour price adjustment model, calculated using a seven-day rolling average of international prices, to better reflect global oil trends.
However, APPPOA Vice Chairman Nauman Ali Butt made it clear that a daily pricing model is “unacceptable and completely unworkable” for retail dealers.
“The daily pricing mechanism created confusion and destroyed our businesses, which are already running at thin margins,” stated APPPOA Chairman Humayun Khan.
He added that the system disproportionately favors large OMCs, who can delay deliveries when global prices drop while forcing pump operators to pay in advance.
The association is demanding:
- Reversion to a monthly or fortnightly fuel price determination model.
- A long-pending revision/increase in dealer commissions (frozen for 3 years).
- Direct consultation with small private businesses before major policy decisions are rolled out.
What Should Drivers Do?
With around 15,000 fuel stations set to run dry, long queues are expected at major filling stations tonight.
- Fill Up Early
Don’t wait until late at night; top off your vehicle’s fuel tank as soon as possible.
- Plan Journeys Carefully
Avoid non-essential long-distance highway travel until the supply situation stabilizes.
- Check OMC Company-Operated Outlets
Company-owned, company-operated (COCO) stations may remain partially operational, but expect heavy traffic.
What’s Next for Pakistani Motorists?
As midnight approaches, the breakdown in negotiations leaves everyday commuters and transport operators facing a tough few days ahead. Whether the federal government opens another channel for dialogue or the strike brings retail fuel distribution to a grinding halt, commuters across the country should prepare for potential supply disruptions.
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