ISLAMABAD: Pakistani petrol pump owners and dealers on Wednesday postponed a nationwide strike planned for Thursday after Petroleum Minister Ali Pervaiz Malik assured them that the government would address their concerns over a new daily fuel pricing mechanism within two weeks.
The All-Pakistan Petrol Pump Owners Association (APPPOA) had announced the strike after Pakistan shifted from weekly to daily revisions of petroleum prices in response to renewed hostilities between the United States and Iran, which have driven volatility in global oil markets. Dealers say daily price revisions will create operational and financial difficulties for filling stations.
The government says the new mechanism will allow domestic fuel prices to reflect international market movements more quickly and improve transparency. Dealers, however, want the daily pricing system scrapped, an increase in their margins to 8 percent from the current fixed rate of Rs8 per liter, and the withdrawal of a 0.8 percent deduction on credit card transactions.
“He has assured us that they will sort out these problems within two weeks,” APPPOA Information Secretary Nadeem Khan said at a press conference after talks with Malik.
“Based on these assurances, we are postponing our shutdown call and hope that within two weeks our problems will be resolved.”
Raja Waseem, vice chairman of the Pakistan Petroleum Dealers Association, also announced that his association was postponing the strike following the minister’s assurances.
Speaking at the press talk, Malik said the government would convene a meeting involving the APPPOA, the Explosives Department of the Energy Ministry and the Oil and Gas Regulatory Authority (OGRA) to address the dealers’ concerns. He said the federal cabinet would also consider OGRA’s recommendations on dealers’ margins.
The minister said OGRA would begin publishing fuel prices and a breakdown of their calculation on its website in both English and Urdu to improve transparency.
Pakistan adopted weekly fuel price revisions in March after the conflict between the United States and Iran sent global oil prices higher and raised concerns over supply disruptions. The government switched to daily revisions last week, saying the move would reduce market manipulation, prevent windfall gains and further align domestic prices with international markets.
In a separate notification late Wednesday, the energy ministry announced that it has increased the prices of fuel and diesel.
The price of high-speed diesel has been increased by Rs7.83 per liter to Rs375.04 per liter while that of petrol has been increased by Rs6.39 per liter to Rs327.12 per liter.
