APPPOA general secretary says association rejected govt’s daily fuel pricing mechanism
DNA
ISLAMABAD: The All Pakistan Petrol Pumps Owners Association (APPPOA) announced a nationwide shutdown of petrol pumps from Wednesday night after negotiations with the government over the daily pricing mechanism for petroleum products ended without a breakthrough.
APPPOA General Secretary Nauman Butt said the association has rejected the government’s daily fuel pricing mechanism and would close petrol pumps across the country in protest.
“We cannot accept daily changes in petroleum product prices under any circumstances,” Butt said.
He added that the talks between APPPOA and the petroleum minister failed to produce any breakthrough.
The Oil and Gas Regulatory Authority (Ogra) updates petroleum products prices on a daily basis on its website to ensure transparency and allow the immediate impact of international price fluctuations to be passed on to consumers.
The daily pricing is based on a seven-day weekly average of international market prices to align with international standards, according to Petroleum Minister Ali Pervaiz Malik.
Meanwhile, sources in the Petroleum Division said the minister has listened to the concerns of petrol pump owners and assured them that the government would also consider dealers’ profit margins.
The sources said the government was introducing the new pricing mechanism to improve transparency in petroleum pricing.
They said the government would ensure an uninterrupted supply of petroleum products and remained open to hearing legitimate proposals from all stakeholders.
An official document has revealed key details of the federal cabinet-approved petroleum pricing mechanism, under which the Ogra will issue ex-depot prices of petrol and high-speed diesel on a daily basis.
Under the new framework, fuel prices will be determined using the average international market prices recorded over the previous seven days.
The regulator will be authorised to announce daily prices without requiring prior approval from the prime minister or the federal government, while prices notified on Fridays will remain unchanged on Saturdays and Sundays.
The document stated that Ogra will publish daily Platts reference prices from July 1, 2026.
It also stipulated that the petroleum levy cannot exceed the limit approved by the federal cabinet, while any change in the levy rate will require approval from the Finance Division.
