Petrol pumps across Pakistan could face another nationwide shutdown as the Pakistan Petroleum Dealers Association (PPDA) has given the government a 72-hour deadline to accept its demands.

PPDA Chairman Malik Khuda Bakhsh warned at a press conference on Tuesday that all petrol pumps across the country would be closed indefinitely from 6am on August 15 if the government failed to address the dealers’ demands within the deadline.

He said the government had made no progress on the dealers’ demands despite the passage of 15 days, leaving them with no option but to announce a nationwide closure.

Khuda Bakhsh said frequent changes in petroleum prices under the daily pricing mechanism were causing financial losses for dealers and creating difficulties in running their businesses.

The association has demanded that the dealers’ margin be increased to 8% and called for a review of the daily petroleum pricing mechanism.

The dealers’ protest primarily centres on their profit margin and the new system for determining petroleum prices. They maintain that the existing margin is insufficient to cover their operating costs and other business expenses.

In March, the PPDA had also threatened a nationwide strike while demanding an increase in the dealers’ margin to 8%.

The association had argued that dealers’ margins had remained unchanged despite a significant rise in petrol and diesel prices, while their operating costs had increased.

The strike announced at the time was later postponed due to the situation arising from the Middle East conflict and concerns over possible disruptions to oil supplies. The dealers, however, maintained their demand for an 8% margin.

The government introduced a new system for setting petroleum prices on a daily basis in July. Petroleum Minister Ali Pervaiz Malik had said the system would use a seven-day rolling average, aiming to improve transparency in price determination and prevent market distortions.

On July 20, a PPDA delegation had expressed support for the government’s daily pricing mechanism during a meeting with the petroleum minister, while also demanding an increase in the dealers’ margin to 8%.

The minister had assured the dealers that their margin demand would be considered, while a meeting with the Oil and Gas Regulatory Authority (OGRA) was also planned to discuss the issue and other concerns.

Differences later emerged over the daily pricing mechanism, with some petrol pump owners’ organisations opposing the system and raising concerns about reduced margins and additional logistics costs.

The PPDA has now reiterated its 72-hour ultimatum, saying petrol pumps nationwide will remain closed indefinitely from 6am on August 15 if its demands are not accepted.