Petrol pump owners reject daily fuel pricing plan, threaten nationwide strike

ISLAMABAD: The All Pakistan Petrol Pump Owners Association (APPPOA) has rejected the government's proposed petroleum pricing deregulation policy, warning of protests and a nationwide strike next week if the decision is not withdrawn.

In a statement, APPPOA Vice Chairman Nauman Ali Butt said the proposed policy had been formulated without consulting petrol pump owners despite its far-reaching implications for the petroleum retail sector.

"We reject the government's proposed petroleum price deregulation policy," Butt said, adding, "If the decision is not withdrawn, we will consider protests and a nationwide strike next week."

He urged the government to review the proposal and avoid shifting the burden of its implementation onto petrol pump owners. The association also demanded that all stakeholders, including petrol pump owners, be consulted before any pricing arrangement is finalised with oil marketing companies (OMCs).

Butt said nearly 15,000 petrol pump owners across the country had expressed serious reservations over the proposed deregulation policy, arguing that it could create operational and commercial challenges for petroleum retailers.

He maintained that the new pricing mechanism would affect the oil transportation system, oil tankers and the overall petroleum pricing framework, potentially disrupting the smooth functioning of the fuel supply chain.

The APPPOA vice chairman urged the government to refrain from taking unilateral decisions and instead engage petrol pump owners in meaningful consultations before implementing any major reforms in the petroleum sector.

The association's statement came after Petroleum Minister Ali Pervaiz Malik announced on Friday that the federal government has approved a new petroleum pricing mechanism under which the Oil and Gas Regulatory Authority (OGRA) will determine and publish petroleum product prices on its website every day, replacing the existing weekly pricing system. The move is part of the government's broader plan to gradually deregulate the petroleum sector.

The government has said the new pricing mechanism will not impose any additional financial burden on consumers and argues that daily pricing will improve market efficiency and align domestic fuel prices more closely with international market trends.

However, the APPPOA has urged the government to reconsider the proposal and address the concerns of fuel retailers before proceeding with its implementation.