https://arab.news/cdnnm
- Pakistan shifted from weekly to daily revisions of petroleum prices in response to renewed hostilities between US and Iran
- Government says the mechanism will allow domestic prices to reflect international market movements more quickly
ISLAMABAD: Pakistan’s petroleum dealers will begin a nationwide strike from 6 a.m. tomorrow, Thursday, after talks with the government over a daily fuel pricing mechanism and retailers’ margins failed, a senior association official said on Wednesday.
The threatened shutdown comes after Pakistan shifted from weekly to daily revisions of petroleum prices in response to renewed hostilities between the United States and Iran, which have caused sharp fluctuations in global oil prices and import costs.
The government says the mechanism will allow domestic prices to reflect international market movements more quickly, while dealers argue daily changes will create operational and financial difficulties for filling stations.
“We have announced a strike from tomorrow morning at 6 a.m. after talks with the government failed,” Raja Waseem, vice chairman of the Pakistan Petroleum Dealers Association, told Arab News.
Waseem said the association wanted the daily pricing mechanism abolished and dealers’ margins raised to 8 percent from the current fixed rate of Rs8 per liter.
Dealers are also demanding a waiver of the 0.8 percent charges they say are deducted on credit card transactions.
Waseem said oil marketing companies should end allocations that limit supplies to individual filling stations, arguing that dealers needed sufficient stocks to meet demand at all times.
It was not immediately clear how many filling stations would join the strike or whether further talks were planned. The Petroleum Division did not immediately respond to a request for comment.
The government began revising fuel prices weekly in March after the war involving the United States and Iran drove up global petroleum prices and raised fears of supply disruptions. Pakistan, which imports most of its oil, relies heavily on supplies routed through the Strait of Hormuz.
Petroleum Minister Ali Pervaiz Malik announced the move to daily pricing last week, saying the Oil and Gas Regulatory Authority would determine rates according to international market trends and publish the factors used in calculating retail prices.
The government has said the system is intended to curb market manipulation, prevent windfall gains and make pricing more transparent. It has also described the change as part of a broader plan to reduce state intervention and move toward a market-based pricing regime.