ISLAMABAD – Just hours before nationwide petrol pump strike threatened to disrupt fuel supplies across Pakistan, Pakistani petroleum dealers reached last-minute breakthrough. After successful negotiations and assurances that their concerns would be addressed, dealers called off the protest, bringing relief to millions of motorists and businesses fearing a fuel crisis.
Pakistan narrowly avoided nationwide fuel crisis after Pakistan Petroleum Dealers Association (PPDA) suspended its planned strike following government assurances that its long-standing demands would be addressed.
The decision came after high-level talks between Federal Petroleum Minister Ali Pervaiz Malik and representatives of the dealers’ association, where both sides discussed the controversial daily fuel pricing mechanism, dealers’ profit margins and other unresolved issues. After receiving guarantees from the government, the association announced it would postpone the protest, ending fears of fuel shortages across the country.
Petroleum Minister Ali Pervaiz Malik thanked petrol pump owners for showing restraint at a time when the country is grappling with economic challenges and soaring energy costs.
He admitted that Pakistanis are under financial pressure as fuel prices continue to climb. He said Prime Minister Shehbaz Sharif is fully aware of the burden on households and businesses, adding that the government has already spent billions of rupees to cushion consumers from the full impact of rising international oil prices.
Malik warned that the situation remains far from stable. Escalating tensions in the region have once again shaken global energy markets, sending crude oil prices upward and increasing the risk of further fuel price hikes in Pakistan. Despite mounting international pressure and volatile markets, he said the government is trying to keep domestic prices under control within its available financial resources.
The breakthrough comes as Pakistan begins one of the biggest changes to its fuel pricing system in years. The government launched 9-month trial of daily petroleum price revisions, replacing the previous weekly and fortnightly review mechanism. From now on, petrol, high-speed diesel and other petroleum products will see their prices updated every working day, from Monday to Friday, based on international oil prices, Platts Arab Gulf benchmarks and actual import costs. Fuel prices will remain unchanged on weekends.
The new formula automatically calculates domestic fuel prices using the average global oil prices and import expenses of the previous seven working days, eliminating the need for separate approval from the prime minister or the federal cabinet before every revision.
Even with an automated pricing model, the federal government will continue to determine major pricing components, including the Petroleum Development Levy (PDL), customs duty, climate levy and the margins allocated to Oil Marketing Companies (OMCs).
Authorities announced a nationwide crackdown on fuel hoarding, black marketing and artificial shortages. The Federal Investigation Agency (FIA), Intelligence Bureau (IB) and district administrations have been empowered to take strict action against anyone found manipulating fuel supplies, with offenders facing suspension or cancellation of their operating licences.
Officials said daily pricing mechanism aimed to make Pakistan’s petroleum market more transparent, responsive to international price movements and better equipped to prevent sudden supply disruptions. But with global oil prices remaining volatile, motorists could soon find themselves checking fuel rates every working day as international markets increasingly dictate what they pay at the pump.
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