Key Points
- Fuel stations to close from midnight on July 22
- Dealers oppose the newly introduced daily price revisions
- Around 15,000 petrol pumps could be affected
ISLAMABAD: Fuel retailers across Pakistan have announced an indefinite nationwide shutdown after talks with the government collapsed over a new daily fuel pricing mechanism.
The All Pakistan Petrol Pump Owners Association said its members would begin closing fuel stations from midnight on July 22 unless the government reverses its decision to replace monthly fuel price adjustments with a daily pricing system and agrees to revise dealer commissions.
Pakistan’s new pricing formula
The government introduced the new mechanism last week to align domestic fuel prices more closely with movements in international oil markets.
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The government took this decision amid heightened volatility stemming from tensions in the Middle East. Dealers, however, argue that daily price revisions are operationally burdensome and could expose station owners to financial losses.
Association officials said negotiations with Petroleum Minister Ali Pervaiz Malik ended without an agreement, prompting the decision to proceed with the strike. The group says it represents approximately 15,000 fuel stations nationwide.
The dispute marks the latest flashpoint between Pakistan’s government and fuel retailers over pricing policies and dealer margins as the country seeks to reform its energy sector and manage the impact of fluctuating global oil prices.
