Fuel dealers ask govt to scrap weekly price mechanism

ISLAMABAD: Petrol pump owners across Pakistan have urged Prime Minister Shehbaz Sharif to immediately scrap the weekly petroleum pricing mechanism, warning that frequent fuel price revisions are causing severe financial instability, operational disruption, and uncertainty in the retail fuel sector.

In a letter addressed to the Prime Minister on May 23, 2026, the All Pakistan Petrol Pump Owners Association (APPPOA) demanded a shift from the current weekly petroleum price adjustment system to a fortnightly (15-day) pricing mechanism, arguing that constant price fluctuations have become unbearable for fuel station operators nationwide.

The letter, signed by APPPOA Vice Chairman Nouman Ali Butt, stated that weekly revisions in petrol and diesel prices are severely affecting inventory management, cash flow stability, customer handling, and overall business planning for petrol pump owners.

“The current practice of revising petroleum prices on a weekly basis has created significant operational and financial instability for fuel station owners,” the association stated in the letter.

According to the association, frequent changes in fuel prices are making it increasingly difficult for petrol pump operators to sustain smooth business operations, while also contributing to market uncertainty and eroding public confidence.

The association warned that continuous price volatility places an “unnecessary and continuous burden” on dealers and retailers already struggling with rising operational costs and shrinking margins.

The APPPOA further argued that the existing mechanism disrupts stock management because dealers often face inventory losses when prices decline shortly after purchasing fuel stocks at higher rates. Similarly, abrupt increases in prices create complications in consumer management and supply operations at retail outlets.

The petroleum retailers urged the government to immediately review the current pricing framework and restore the earlier 15-day petroleum price revision cycle, which they believe offers greater predictability and stability for both businesses and consumers.

“This change will provide much-needed stability, improve operational efficiency, and create a more balanced environment for both dealers/owners and consumers,” the letter added.

The development comes at a time when petroleum prices in Pakistan are witnessing increased volatility due to fluctuations in global crude oil markets, exchange rate pressures, and changes in taxation and petroleum levy adjustments.

Petrol and High-Speed Diesel (HSD) are the country’s most widely consumed petroleum products. Petrol is primarily used in motorcycles, cars, rickshaws, and small private vehicles, while HSD fuels heavy transport, buses, trucks, trains, agricultural machinery, and a major portion of the industrial and logistics sector. Any abrupt change in their prices directly impacts inflation, transportation costs, and overall economic activity.

The association expressed hope that the Prime Minister would take immediate notice of the issue and introduce policy changes to support the petroleum retail sector and ensure smoother market operations across the country.