Rejects the government’s mechanism for daily revision of fuel prices and declares that the strike will continue until its demands are accepted
Pakistan Petrol Pumps Association President Humayun Khan addresses a press conference in Islamabad on Tuesday, announcing nationwide closure of petrol pumps after negotiations with the government failed. SCREENSHOT
The All Pakistan Petrol Pump Owners Association (APPPOA) on Tuesday announced nationwide closure of petrol pumps from Tuesday evening after negotiations with the government over its demands ended inconclusively.
In a context of volatility in world oil prices following the resumption of hostilities in the Middle East, the government adopted last week a mechanism for daily revision of fuel prices. Under the new system, daily prices are based on a seven-day average of international market rates to align with international standards.
Addressing a press conference, association president Humayun Khan said representatives of the All Pakistan Petrol Pump Association from the four provinces, as well as Gilgit-Baltistan and Azad Kashmir, met Petroleum Minister Ali Pervaiz Malik and put forward two key demands.
Read: Government increases petrol price by Rs4.93, HSD by Rs7.15 per liter for July 22
“Our two main demands were that our commission be converted to a percentage-based system and that the daily revision of fuel prices be abolished and return to a monthly mechanism,” he said.
He said negotiations had failed to resolve the association’s concerns.
“Our problems remain unresolved. If you look at the situation of oil marketing companies (OMCs), dealers across Pakistan are currently going through extremely difficult circumstances,” he said.
Criticizing the government’s decision to revise prices of petroleum products daily to bring them in line with international rates, Khan said dealers in Pakistan had suffered losses in the last two to three months.
“The price was increased yesterday and we hear that it will increase further today. The government shifted the burden to petrol pumps, OMCs and refineries to escape public criticism, saying it was no longer their responsibility,” he said, adding that the authorities were misleading the public by increasing prices every day.
“The public understands this very well. Whether you increase prices by Rs 100 at once or by Rs 5, Rs 10 or Rs 20 every day, the result is the same,” Khan added.
The president said the association had urged the government to resolve the issue in a way that was fair to both the public and the petrol pump owners, but despite all efforts, “we have realized that this government does not want to solve the problems of the business community.”
He announced a nationwide shutdown, including in Gilgit-Baltistan and Azad Kashmir, adding that the association was also in touch with tanker owners, who would soon announce their own strike.
Read also: Government shifts to daily POL pricing amid global headwinds
He urged the government to listen to the concerns of the business community, describing petrol pump owners as the main players in the oil industry. He lamented that whenever the government formulated a policy, petrol pump owners were not consulted.
He said the closure would continue until all of the association’s demands were met.
Previously, talks between the government and the association failed to produce a breakthrough, with both sides ending the meeting without any progress.
In a video message, association leader Nauman Butt said negotiations with the oil minister had not produced any positive results, while discussions on dealer margins and the implementation of daily fuel price reviews also remained inconclusive.
He said the association had decided to close petrol pumps across the country from July 22 midnight and would continue the nationwide strike until its demands were met.
The association ordered all petrol pump owners to fully participate in the strike and called on them to keep their outlets closed from July 22 midnight.
Learn more: Daily fuel reviews cause commute chaos
Meanwhile, the Pakistan Goods Transport Alliance has announced its support for the strike called by the All Pakistan Petrol Pump Association.
In a statement, alliance chairman Malik Shehzad Awan urged the federal government to accept what he described as the legitimate demands of the All Pakistan Petrol Pump Association and the Petroleum Dealers Association.
Awan said transporters, petrol pump owners and dealers association were heading for a nationwide strike due to what he termed as erroneous policies of the federal government.
He also rejected the government’s decision to revise the prices of petroleum products on a daily basis.
“The strike by All Pakistan Petrol Pump Owners Association and Petroleum Dealers Association will bring our transportation operations to a halt,” he said.
He urged the federal government to “come to its senses” and take decisions after taking stakeholders into confidence.
Awan also said the federal and provincial governments were not providing any assistance to cargo transporters.
