Islamabad: The All-Pakistan Petroleum Pump Owners Association (APPPOA) on Wednesday deferred its nationwide strike after successful negotiations with Federal Minister for Petroleum Ali Pervaiz Malik, who assured dealers that their longstanding concerns, including the issue of dealers’ margins, would be resolved.
Addressing a joint press conference with APPPOA representatives, Malik said the government was aware of the challenges faced by petroleum dealers, particularly issues involving oil marketing companies (OMCs) and other stakeholders.
He said the Petroleum Division and the Oil and Gas Regulatory Authority (OGRA) would hold detailed consultations with dealers to address their concerns.
The minister said the long-pending issue of dealers’ margins, unresolved for several years, would be taken to the federal cabinet in consultation with OGRA. A summary outlining a way forward would be submitted to ensure legitimate dealers receive a fair margin to cover their operational costs.
“I assure the dealer community, on behalf of the ministry and the OGRA chairman, that this longstanding issue will be resolved,” he said.
Malik said another round of consultations with APPPOA representatives would be held within two weeks to review the implementation of the understanding reached during the meeting.
He said the government’s objective was to establish a transparent and fair petroleum pricing system so that allegations of profiteering or hoarding could not be directed at the ministry, OGRA, refineries or OMCs.
The minister thanked all stakeholders for cooperating with the government during a difficult period and expressed confidence that collective efforts would help the country overcome current challenges.
Referring to previous fuel price movements, Malik said petrol and diesel prices had once risen to around Rs520 per litre, but the government later reduced prices by Rs70 to Rs80 per litre when international oil prices declined, fulfilling Prime
Minister Shehbaz Sharif’s commitment to pass on the benefit of lower global prices to consumers.
He credited the government’s economic management and the leadership’s efforts for helping stabilise the situation.
He said Prime Minister Shehbaz Sharif and the federal government were fully aware of the hardships caused by higher fuel prices. The minister added that the government had utilised hundreds of billions of rupees from federal resources to absorb part of the increase in petroleum prices.
He said President Asif Ali Zardari and the provincial chief ministers had also worked together to introduce a targeted subsidy programme aimed at providing relief to the public.He acknowledged the cooperation of all stakeholders in the petroleum sector, including refineries, oil marketing companies (OMCs), petroleum dealers and their representative organisations, for supporting the implementation of a transparent and fair pricing mechanism.
“I am grateful to all of them for extending full cooperation during this difficult period,” he said.
The minister said renewed geopolitical tensions in the region and the threat of further conflict had once again pushed up international oil prices, placing significant pressure on Pakistan’s economy. He specifically thanked APPPOA for supporting the government’s efforts to manage the latest challenge.
He said the government and all stakeholders had agreed on a coordinated approach to address the latest surge in international oil prices while protecting consumers and maintaining stability in the petroleum sector.
APPPOA Information Secretary Nadeem Khan said the association had decided to defer the strike in the larger public interest amid the prevailing regional situation and to avoid inconvenience to citizens.
He said the government had assured the association that its longstanding demand for a revision in petroleum dealers’ margins, pending since 2022, would be addressed.
“We have full confidence in Minister Ali Pervaiz Malik and hope that the commission and margin issue will be resolved within the promised timeframe,” Khan said.
He said the government had also agreed to review the newly introduced daily petroleum pricing mechanism after a two-week trial period. According to Khan, the mechanism would remain in place on a trial basis, after which its advantages and shortcomings would be assessed.
If it created significant difficulties for dealers or consumers, the government would reconsider it and could revert to the previous pricing schedule, under which fuel prices were revised fortnightly or monthly. Khan appreciated the minister for taking dealers into confidence and holding detailed consultations on their concerns.
He said the discussions covered a range of issues affecting petroleum dealers, and the government had assured them that practical solutions would be implemented within the next two weeks. “Based on these assurances, we are postponing our shutdown call so that the public does not face unnecessary hardship,” he said.
The association expressed hope that the government would fulfil its commitments and resolve the outstanding issues within the agreed timeframe. Speaking on the occasion, Vice Chairman of the Pakistan Petroleum Dealers Association Raja Waseem thanked Federal Minister for Petroleum Ali Pervaiz Malik and his team for engaging with dealers and helping break the deadlock through dialogue.
He said the minister, along with the OGRA chairman, the petroleum secretary, the additional secretary and the director general, had worked intensively over the previous three days to prevent the dispute from escalating.
“We are here to facilitate the public, not to create difficulties for them,” Waseem said.
He said petroleum dealers had been facing financial hardship for several months, and after years of unresolved issues regarding dealers’ margins, the association had concluded that announcing a shutdown had become unavoidable.
However, he said the government’s commitment to resolve the longstanding margin issue and review the newly introduced fuel pricing mechanism had convinced the association to postpone the strike.
Waseem appreciated the government’s willingness to resolve the dispute through dialogue and expressed hope that the commitments made by the minister would be fulfilled within the agreed timeframe.
He also urged the petroleum minister to continue consulting all stakeholders to ensure that the new petroleum pricing mechanism remained practical, transparent and beneficial for both dealers and consumers.
