Dealers issue 72-hour ultimatum over 8% petrol margin as transporters’ strike adds pressure on fuel supply
ISLAMABAD: Petroleum dealers in Pakistan have announced an indefinite nationwide closure of petrol pumps from August 15, escalating pressure on the government to address their long-standing demands, including an increase in the petrol dealers’ margin.
The decision was announced on Tuesday following a meeting of petroleum dealers from across the country. The development comes amid an ongoing wheel-jam strike by goods transporters, raising concerns over potential disruptions to fuel supplies and other essential commodities.
Pakistan Petroleum Dealers Association Chairman Malik Khuda Baksh said the association had given the government a 72-hour ultimatum to accept its demands, warning that dealers would be unable to continue operating petrol pumps if their concerns were not addressed.
The dealers are seeking an 8% margin on petrol, arguing that the existing margin is insufficient to cover rising operational costs and maintain the viability of petrol stations.
Baksh said the association was under growing pressure from its approximately 14,000 members and that dealers had exhausted their patience after waiting for the government to address their concerns.
He said petrol pumps would remain closed indefinitely until the dealers’ demands were met.
Dealers Say Government Deadline Has Expired
The association chairman said the government had previously been given two weeks to resolve the issues, but the deadline had passed without a satisfactory outcome.
He said the dealers had subsequently informed the government through a formal letter that they were facing increasing pressure from their membership.
Baksh added that the association had withdrawn an earlier strike call on ethical grounds after receiving assurances that the government was serious about resolving the outstanding issues.
Earlier Strike Was Postponed
On July 22, the All Pakistan Petrol Pump Owners Association (APPPOA) postponed its planned nationwide shutdown for two weeks following negotiations with Petroleum Minister Ali Pervaiz Malik.
The minister had assured petrol dealers that their long-standing concerns would be examined and addressed.
However, dealers have now revived the closure threat, saying sufficient progress has not been made within the agreed timeframe.
The association had also called on the Ministry of Petroleum to review the mechanism used to determine fuel prices, particularly amid concerns over delays in implementing agreements reached between the government and petrol pump owners.
Fuel Pricing Mechanism Under Scrutiny
In a letter sent to the petroleum minister on August 7, the association’s vice chairman urged the government to review the existing policy for determining fuel prices on a daily basis.
Petroleum dealers have argued that changes to the fuel pricing mechanism and delays in implementing agreed measures have placed additional financial pressure on petrol pump operators.
The proposed shutdown comes at a sensitive time, as goods transporters are also continuing their nationwide strike after negotiations with the federal and Sindh governments failed to produce a breakthrough.
The simultaneous disputes involving transporters and petroleum dealers could create additional pressure on Pakistan’s fuel distribution network if they remain unresolved.
The government is now facing a 72-hour deadline from petroleum dealers to address their demands before the proposed nationwide closure begins on August 15.