The deadlock came after the government refused to withdraw the daily petroleum pricing mechanism, while dealers rejected a proposed increase of Rs1.34 per litre in their margin.

Dealers demand higher margin

The dealers are demanding an increase in their petrol margin to 8%, citing rising operating costs, high electricity bills and franchise fees.

They have also strongly opposed the government’s system of revising petroleum prices every 24 hours, saying frequent changes have adversely affected their businesses.

During the talks, the government assured dealers that their margin would be increased by Rs1.34 per litre. However, the association rejected the offer, describing it as insufficient to meet rising business expenses.

The dealers had given the government a 72-hour ultimatum over their demands.

Following the failure of the negotiations, the PPDA has called an emergency meeting of its executive committee in Karachi to finalise the strategy for the planned strike.

Govt rejects demand to end daily pricing

Petroleum dealers say the daily price changes are causing serious disruption to their business operations and have demanded the restoration of the previous pricing mechanism.

The federal petroleum minister, however, has expressed strong displeasure over the 72-hour deadline issued by the dealers.

The government has also ruled out any change to the daily pricing mechanism.

Federal Petroleum Minister Ali Pervaiz Malik had earlier announced that petroleum product prices would henceforth be determined on a daily basis, with the Oil and Gas Regulatory Authority (OGRA) calculating and publishing revised prices on its website each day.

The new system has resulted in frequent fluctuations in petroleum prices since its implementation, adding to uncertainty for both dealers and consumers.