The Pakistan Petrol Pump Owners Association on Wednesday called off its planned nationwide strike after successful negotiations with Federal Petroleum Minister Ali Pervaiz Malik, following government assurances to address the industry’s key concerns.

The association had announced a countrywide shutdown of petrol pumps on Thursday in protest against the government’s new daily fuel pricing mechanism and other issues affecting the petroleum retail sector. The strike was deferred after talks between the government and representatives of petrol pump owners.

During the meeting, the association presented three key demands. It sought an increase in profit margin from the current 2.6 per cent to 8pc, restoration of the previous fortnightly or monthly fuel price revision mechanism instead of daily pricing, and abolition of the quota system imposed by oil marketing companies.

Addressing a press conference after the meeting, Federal Minister for Petroleum Ali Pervaiz Malik acknowledged the challenges faced by consumers and the petroleum sector, saying the government was fully aware of the burden created by rising international oil prices.

He said Pakistan, as a net importer of petroleum products, had little choice but to pass on increases in global oil prices to domestic consumers.

He added that the Oil and Gas Regulatory Authority (OGRA) was compelled to revise fuel prices on a daily basis under the new mechanism due to fluctuations in international markets.

The minister said the issue of margins had remained unresolved for several years and assured stakeholders that, in consultation with OGRA, a summary would be submitted to the federal cabinet. He pledged that the matter would be resolved within the next two weeks.

He also said the government would review the daily fuel pricing mechanism after a two-week trial period, adding that the new system was introduced to improve transparency.

He further announced that OGRA would begin publishing daily fuel price notifications in Urdu alongside English on its website.

Referring to the regional situation, the minister said renewed tensions had increased pressure on global energy markets.

He added that Prime Minister Shehbaz Sharif, Field Marshal Syed Asim Munir, Interior Minister Mohsin Naqvi and Deputy Prime Minister Ishaq Dar were making diplomatic efforts to help maintain regional stability.

Following the meeting, representatives of the association confirmed that a written agreement had been signed with the petroleum minister.

They expressed hope that the issue of profit margins would be resolved within two days and welcomed the government’s commitment to review the daily pricing policy.

The association said the daily fuel pricing system would continue on a trial basis for two weeks before a final decision is taken.

The federal government transferred the authority to determine petroleum product prices to OGRA on July 18, introducing a daily pricing mechanism under which petrol and high-speed diesel prices are announced every day on the regulator’s website.

The policy has drawn criticism from consumers, transporters and petrol pump owners, particularly after recent increases in diesel prices led to higher transport fares across the country.