Islamabad: Petrol pump owners have withdrawn their strike call after the federal government assured petroleum dealers that their longstanding demands, particularly regarding profit margins, would be reviewed and addressed within the next two weeks.
The announcement came after fresh discussions between Federal Minister for Petroleum Ali Pervaiz Malik and representatives of petroleum dealers in Islamabad, easing concerns over a possible nationwide disruption in fuel supplies.
Speaking alongside the petroleum minister, Nadeem Aziz, Information Secretary of the Petroleum Pump Owners Association, said the association had decided to withdraw the strike call after receiving assurances from the government.
“We have full confidence in Petroleum Minister Ali Pervaiz Malik and hope that the dealers’ margin issue will be resolved within the next two weeks,” he said.
Government Promises Cabinet Review of Dealers’ Demands
Addressing the media, Petroleum Minister Ali Pervaiz Malik thanked the All Pakistan Petrol Pump Owners Association and other stakeholders for their cooperation.
He said the government fully understands the concerns of petroleum dealers as well as the difficulties being faced by the public amid rising fuel prices.
The minister confirmed that a summary regarding dealers’ profit margins would be sent to the federal cabinet and expressed confidence that, after consultations with all stakeholders, the issue would be resolved within two weeks.
He also assured dealers that the government and the Oil and Gas Regulatory Authority (OGRA) would continue working together to find a sustainable solution.
Government Cites Regional Tensions, Rising Oil Prices
Ali Pervaiz Malik said Pakistan has been trying to shield consumers from sharp increases in petroleum prices despite growing pressure from international markets.
He said the government has spent hundreds of billions of rupees since February to cushion the impact of higher fuel prices and has also introduced targeted subsidy mechanisms to protect vulnerable segments of society.
The minister warned that renewed regional tensions have once again pushed international crude oil prices higher, increasing pressure on Pakistan’s energy import bill.
He added that Prime Minister Shehbaz Sharif, Deputy Prime Minister Ishaq Dar, and Chief of Army Staff Field Marshal Syed Asim Munir are making diplomatic efforts to help reduce regional tensions, which could contribute to greater economic stability.
Read More: Pakistan Increases Petrol, Diesel Prices
Dealers Had Threatened Nationwide Shutdown
The decision to withdraw the strike call comes after petroleum dealers had earlier warned of a nationwide shutdown over unresolved demands, including an increase in dealers’ profit margins and concerns over the proposed fuel pricing mechanism.
The association had demanded that the dealers’ margin be increased from Rs8.64 per litre to Rs24 per litre. It also called for the abolition of the quota system imposed by oil marketing companies and proposed that petroleum prices be reviewed weekly or every 15 days instead of more frequent revisions.
According to dealers, government representatives had sought additional time to review these demands before reaching a final decision.
Consumers Seek Greater Transparency in Fuel Pricing
The proposed mechanism for more frequent petroleum price revisions has also drawn criticism from consumers.
Many citizens questioned how domestic fuel prices could be adjusted so quickly based on international market fluctuations when petroleum products available in Pakistan are supplied from existing imported stocks.
Consumers argued that reductions in global oil prices often take longer to reach local markets, while increases are reflected almost immediately. They called on the government to introduce a transparent pricing formula that clearly explains how domestic petroleum prices are determined and implemented.
Petroleum dealers have repeatedly raised concerns over declining profit margins, arguing that rising electricity tariffs, labour costs, inflation, and other operating expenses have significantly increased the cost of running fuel stations. The issue has resurfaced several times in recent years, with dealer associations warning of protests and shutdowns unless their commissions are revised. The latest negotiations ended with the withdrawal of the strike call, while talks between the government and dealers are expected to continue over the next two weeks.
