Islamabad: The differences between petrol pump owners and government officials have deepened over the government’s proposal to fix the prices of petroleum products on a daily basis, after which the All Pakistan Petrol Pumps Owners Association (APPPOA) has announced it will start a nationwide strike from the intervening night of Wednesday and Thursday.
The leaders of the organisation say that their basic concerns were not addressed in the negotiations with the Ministry of Petroleum, hence the decision to take the protest route to protect business interests. According to them, the proposed system is not financially viable for petrol pump owners in the current circumstances.
The association believes that if the daily price adjustment method is implemented, small and medium-sized petrol pumps will be the worst hit. They say that daily price adjustments will complicate stock management and supply chains for businesses that operate on limited margins.
Petrol pump owners have also expressed concerns that large oil marketing companies may benefit relatively more from the proposed system, while retail dealers will face financial losses and uncertainty. According to them, daily fluctuations in supply timings and prices will affect business planning.
The organisation also pointed out that the commission of dealers has not been changed for the last three years, even though business expenses, electricity, salaries and other operational costs have increased significantly during this time. They demand that all stakeholders be formally consulted before reviewing the commission and any new policy.
According to the association, if the government does not review its decision, about 15,000 petrol pumps across the country may remain closed, which is likely to temporarily affect fuel supply.
On the other hand, the Pakistan Petroleum Dealers Association (PPDA) has made the final decision conditional on a meeting of its executive committee. Representatives of the organisation say that they will announce the future course of action after consulting their members.
Meanwhile, the Petroleum Ministry maintains that the proposed system aims to update local prices in line with international oil prices in a more timely and transparent manner. According to officials, this method will also be based on the average of international prices so that the benefits of changes in the global market can be passed on to consumers quickly.
However, petrol pump owners say that the pricing mechanism should be developed not only from the government’s perspective but also while keeping in mind the ground realities and business needs. According to them, a policy implemented without mutual consultation can create problems not only for dealers but also for consumers.
Due to differences between the government and dealers, significant progress is expected in the next few days, while both sides are focused on upcoming negotiations and possible decisions.
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