The All Pakistan Petrol Pumps Owners Association (APPPOA) and the Petroleum Dealers Association on Wednesday postponed their planned nationwide strike after successful negotiations with the federal government, as prices of petroleum products were raised once more under the daily price fixation mechanism.
Petrol pump owners and dealers had earlier announced a 24-hour nationwide shutdown from Thursday to protest the government’s decision to revise petroleum product prices on a daily basis and its potential impact on their margins.
Addressing a joint press conference with Petroleum Minister Ali Pervaiz Malik, representatives of the petroleum sector said they had received assurances that their concerns would be addressed. They said the government had committed to increasing petroleum dealers’ margins and expressed confidence that the matter would be resolved within the next two weeks.
APPPOA Information Secretary Nadeem Khan said pump owners expected the issue of commissions to be settled within two weeks, adding the daily fuel pricing mechanism would be operated on a trial basis during the same period.
Malik, meanwhile, said the government had assured petrol pump owners and dealers that their concerns would be addressed within two weeks. He said further consultations would be held if outstanding issues remained unresolved.
According to the minister, a summary on the proposed adjustment in dealers’ margins would be submitted to the federal cabinet, while the daily fuel pricing mechanism would be reviewed with petroleum sector organizations after the trial period. He maintained the new mechanism aimed to introduce transparency in the pricing system and avoid any perception of unjustified profiteering.
He acknowledged that volatility in petroleum prices remained a significant concern, particularly amid rising regional tensions. He said Prime Minister Shehbaz Sharif, Field Marshal Asim Munir, the interior minister and the foreign minister were engaged in efforts aimed at maintaining stability and supporting ceasefire initiatives.
New prices
Under the new mechanism, the government on Wednesday increased the price of petrol by Rs. 6.39/liter and high-speed diesel by Rs. 7.83/liter for July 23 (Thursday), bringing the new retailer prices to Rs. 327.12/liter and Rs. 375.04/liter, respectively.
Prior to the start of the Middle East conflict that has disrupted fuel supplies, diesel used to cost Rs. 281/liter and petrol Rs. 266/liter.
Petrol is mainly used in private transport, small vehicles, rickshaws and two-wheelers, and changes tend to affect the middle and lower-middle classes. Diesel is mostly used in the transport and power sectors and increases to it are considered inflationary.