Petrol Pumps in Pakistan Announce Shutdown Due to Failed Negotiations

All Pakistan Petroleum Pump Owners Association (PPPOA) has announced that all petrol pumps across Pakistan will be shut down indefinitely from Wednesday at 12 AM. The announcement comes after PPPOA’s negotiations failed with the government of Pakistan to propose a new policy for petroleum prices instead of revising them daily. The association expressed that daily changes in petroleum prices are not feasible for the industry and will only create tougher challenges for petrol pump owners.

Last week, the government of Pakistan suggested a daily price revision proposal and then got it accepted without the approval or consultation with PPPOA. While it was approved last Saturday, the first official price change arrived yesterday at the start of the new week when OGRA announced a minor decrease in petrol prices but a major increase in diesel prices, taking it to Rs. 360.06. PPPOA negotiated with the government officials today, but with the official announcement, it seems like they did not go well.

The announcement was made by PPPOA chairman Humayun Khan, who appeared disappointed and told the media that daily price updates of petroleum products are not feasible and they want to reinstitute the monthly fuel price mechanism which was originally set by the government. Despite the political situation between Iran and the USA, the supply is steady across the country. According to the chairman, the pump owners are also demanding a review of dealer commissions.

As of now, all we know is that the association will shut down all private petrol pumps starting at 12 AM tomorrow, but the company-operated petrol pumps will remain operational across the country. The two parties might meet again tomorrow to sort this out, so if something comes up, we will definitely update you.

Update: Petrol Pumps Strike Called Off After Government Negotiations