The Pakistan Petroleum Dealers Association (PPDA) has announced a nationwide one-day strike, with petrol pumps across the country set to remain closed from 6am on Thursday after negotiations with the government failed to address the dealers' demands.
Association leaders warned that if the government does not accept their demands, the protest could be extended into an indefinite nationwide strike, potentially disrupting fuel supplies across Pakistan.
Speaking at a press conference in Karachi, PPDA Vice Chairman Tariq Hassan said the decision to observe a one-day strike was taken after consultations during the association's central meeting.
PPDA leaders said dealers from across the country were consulted before the decision was finalized.
Addressing SAMAA, PPDA Sindh President Amir Khan confirmed that all petroleum pumps across Pakistan will remain closed from 6am tomorrow as part of the nationwide protest.
Meanwhile, Vice Chairman of the Petrol Pumps Owners Association Inam-ul-Haq Chaudhry said the supply of petrol and diesel to filling stations would be stopped from 12am tonight, ahead of the strike.
He added that all petrol pumps would remain closed from midnight in response to the call given by the All Pakistan Petrol Pumps Owners Association.
PPDA presents five major demands
During the press conference, the Petroleum Dealers Association outlined five major demands and urged the government to address them immediately.
The association's demands include:
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An end to daily price determination of petrol and diesel, with fuel prices to be fixed on a monthly basis instead.
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An increase in petroleum dealers' margin to 8%, arguing that the current margin is no longer financially sustainable.
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A revision of dealers' margins in light of the government's increase in the petroleum levy to Rs120, while dealers' commissions have remained unchanged.
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The abolition of the quota policy imposed by oil marketing companies on petroleum dealers.
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The removal of bank transaction charges on petrol and diesel purchases made through plastic cards.
Vice Chairman Tariq Hassan said daily fuel price revisions were unacceptable under any circumstances and insisted that monthly pricing was the only workable solution.
The PPDA Sindh has urged the government to immediately approve all of its demands.
"If there is a shortage of petroleum products, the government should consider closing petrol pumps at night, similar to the restrictions imposed during the COVID-19 lockdown," said PPDA Sindh President Amir Khan Mehsud.
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He said that daily revisions in petroleum prices are not practical and create serious operational challenges for dealers.
"Petrol dispatched from Karachi takes several days to reach Lahore and other cities. If fuel prices change every day while the product is in transit, it becomes impossible to run the business efficiently," Mehsud added.
Dealers say current margin is unsustainable
Tariq Hassan said the government had significantly increased the petroleum levy to Rs120, but dealers had not received any corresponding increase in their profit margin.
He maintained that raising the dealers' margin to 8% had become essential for the survival of petrol pump businesses.
Echoing the demand, Inam-ul-Haq Chaudhry described the existing commission structure as "economic murder" for petroleum dealers and said an increase in margins was inevitable.
Warning of indefinite protest
The association warned that the one-day strike is only the first phase of its protest campaign.
"If the government does not accept our demands, the strike will continue," Tariq Hassan said, adding that the protest could become indefinite.
Inam-ul-Haq Chaudhry also criticized what he described as the government's inflexible attitude, saying dealers had been left with no option but to suspend operations.
"We do not want to inconvenience the public, but the government has left us with no other choice," he said.
He urged the government to resolve the matter before the protest escalates, saying there was still time for authorities to address the dealers' concerns.
Fuel supply could be affected
With fuel supply to petrol pumps expected to stop from midnight and filling stations scheduled to close from early Thursday morning, motorists may face temporary disruptions if negotiations between the government and petroleum dealers do not produce a breakthrough.
The association has reiterated that the future course of action will depend on the government's response to its five-point charter of demands.
