Petrol pump owners split as strike threat softens after govt talks

Pakistan’s petrol pump owners have emerged divided after talks with the government over fuel pricing and dealer margins, with one faction agreeing to defer a strike for two weeks while another insisting the shutdown plan remains in force. According to the information available from the meeting, the government told representatives of the All Pakistan Petroleum Pump Owners Association that it would review the issues raised by dealers through further consultation. The discussion was led by Petroleum Minister Ali Pervaiz Malik, Petroleum Secretary Hamid Yaqoob Shaikh and acting OGRA chairman Nabeel Awan. One group within the association said the strike call had been postponed in the interest of the public after what it described as assurances from the government. Another set of office-bearers, including the chairman and vice chairman, rejected that interpretation and said the negotiations had not produced a breakthrough. They said the planned strike would still move ahead from midnight, and shared footage claiming some pumps had already been closed. The dispute centres on daily petroleum pricing, dealers’ commission and supply arrangements. Pump owners have been opposing the daily pricing mechanism and are asking for an eight per cent commission, which they say would amount to around Rs25 per litre rather than the current Rs8.64 on petrol and diesel. They are also seeking an end to supply quotas imposed by oil marketing companies. The government, for its part, has not publicly accepted those demands in full. Based on the feed details, officials did not make firm commitments on the specific points raised by dealers. Instead, they promised to work toward a transparent and fair system and to consult on matters including dealers’ margins. A key part of the discussion appears to be a two-week trial related to daily fuel pricing, after which the government has promised a review. That suggests the immediate confrontation may ease, at least temporarily, but the underlying disagreement has not been settled. The division inside the association matters because it creates uncertainty over how widely any strike could be observed. The association had earlier said it would shut about 15,000 petrol stations nationwide after the first round of talks failed. If the membership is not aligned, the practical effect on fuel availability could vary by region and by ownership group. For consumers, the most immediate concern is whether fuel stations stay open and whether any disruption spreads beyond a limited number of outlets. At the same time, the dispute also points to a longer-running tension between fuel retailers and regulators over commissions, pricing rules and supply management. What remains unclear is whether the two sides will be able to produce a written agreement during the next two weeks, and whether the faction calling for a strike has the backing needed to enforce it. For now, the government says it wants more consultation; the association is still speaking in two voices.

Source: Dawn Home - https://www.dawn.com/news/2017673/petrol-pump-owners-split-over-strike-after-govt-talks