The petrol pump owners in Pakistan have decided a joint shutdown of all petrol pump shops throughout the country following negotiations with the federal government, which were unable to resolve important issues regarding the prices of petrol and diesel and petrol pump dealer commissions.
Peaceful protests by the All Pakistan Petrol Pumps Owners Association (APPPOA) against the petroleum companies’ hike in petrol prices began Tuesday night at petrol pump locations across the country, which said the protest would remain in force until the government accedes to their demands.
At a press conference in Islamabad, APPPOA Chairman Humayun Khan commented that the association had requested the government to remove the fixed dealer commission and abolish the new daily fuel price review mechanism, replacing it with a percentage one. He says there was no resolution on either during discussions with petroleum minister Ali Pervaiz Malik.
The government last week announced changes to the rates of petrol and diesel prices every day, which will be based on a seven-day average of the international oil market. The new system was introduced to capture the global price movements faster, officials say.
But the policy has cast uncertainty and losses over the oil marketing companies and petrol pump owners, they argue. They state that constant pricing change has caused the business to be more difficult and has put the price fluctuation on retailers.
The association also condemned the government’s decision on introducing the new pricing system without seeking the views of the petrol pump owners and said that they are one of the major stakeholders in the petroleum sector of the country.
Meanwhile, the Pakistan Goods Transport Alliance has welcomed the strike and is appealing to the government to resume talks. The alliance stated that if the shutdown lasts long, it would impact transportation and fuel supplies across the country.
Those caught in the strike may find it difficult to buy fuel, transport and logistics businesses may experience disruption. The government has yet to confirm if new talks with petrol pump owners will be held.
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