Petrol Pump Owners Divide Over Fuel Pricing Negotiations

• APPPOA faction postpones strike after government assurances
• Government signals review of daily pricing, dealer commissions after two weeks
• Stakeholders demand structural changes to fuel pricing and commission structure

ISLAMABAD: The All Pakistan Petroleum Pump Owners Association (APPPOA) has been split following government negotiations, with one faction agreeing to delay a nationwide strike while opponents prepare to proceed with planned shutdowns.

The government, led by Petroleum Minister Ali Pervaiz Malik, petroleum secretary Hamid Yaqoob Shaikh, and OGRA acting chairman Nabeel Awan, concluded talks without fully resolving key demands but pledged to address concerns through structured consultations.

До 15,000 fuel stations were initially scheduled to close Wednesday night after APPPOA disrupted operations following failed talks over daily fuel pricing and dealer commissions. While one group accepted temporary reassurances, the association’s leadership maintains that core demands remain unmet.

Dealers continue to oppose daily price adjustments and insist on an eight percent commission increase – now equivalent to Rs25 per litre compared to current Rs8.64 – alongside removal of supply quotas imposed by oil marketing companies.

While no concrete agreements were reached during Wednesday’s negotiations, Malik emphasized the government’s commitment to establishing a transparent pricing system through stakeholder collaboration.

APPPOA information secretary Nadeem Aziz Khan confirmed the strike postponement, citing minister’s commitments to trial daily pricing for two weeks and review dealer margins in writing.

However, APPPOA chairman Humayun Khan rejected the talks’ outcome, stating in a recorded message that dealers must maintain unity during the indefinite strike as their legitimate demands – including unchanged since 2022 – remain unaddressed.

Malik acknowledged the margin increase request was excessive but indicated willingness to accommodate reasonable adjustments considering inflationary pressures.

Fuel Pricing Transparency

Meanwhile, the Pakistan Business Forum (PBF) criticized daily pricing reforms, warning that price volatility would disrupt supply chains and worsen inflation amid economic instability.

PBF chief organiser Ahmad Jawad argued that petroleum price adjustments would negatively impact industrial production, trade, transportation, and agricultural sectors already strained by economic uncertainty.

PBF called for immediate repeal of daily pricing mechanisms to prevent sector-wide disruptions.

Published in Dawn, July 23rd, 2026

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