Petrol Dealers Call Off Strike After Government Approves Margin Increase

ISLAMABAD, August 14, 2026: Petrol dealers have called off a planned nationwide strike after the government approved a revision in their margins, preventing a potential disruption to fuel supplies from Saturday.

The Pakistan Petroleum Dealers’ Association (PPDA) announced the decision on Friday after receiving assurances from the government.

The Finance Ministry confirmed that the Economic Coordination Committee (ECC) had approved a revision in dealers’ margins for motor spirit and high-speed diesel.

The ministry did not disclose the revised amount in its statement.

However, PPDA Chairman Malik Khuda Bakhsh said the government had approved an increase of Rs1.34 per litre. This would take the dealers’ margin to Rs10 per litre from the current Rs8.64.

The development came just hours before the association was due to begin its planned strike.

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Government move averts fuel disruption

The PPDA had threatened to close petrol stations across Pakistan from 6am on Saturday, August 15.

The association had issued a 72-hour ultimatum earlier in the week. Dealers demanded an increase in their margin to 8 per cent of the retail price of petrol.

The planned action raised concerns about possible disruption to fuel supplies across the country.

The association said it had postponed the strike because of assurances given by the government.

However, PPDA Chairman Bakhsh warned that the association would continue its protest until all outstanding demands were addressed.

The petrol dealers have argued that their margins have not been increased for several years, placing pressure on their businesses.

Dealers seek further increase

According to the PPDA, the approved Rs1.34 increase is a step towards addressing their concerns, but it does not fully meet their demand.

PPDA Vice Chairman Tariq Hassan claimed that dealers had not received a margin increase for three years.

He said around $50 million owed to petroleum dealers remained outstanding with the government.

The association had been seeking an 8 per cent margin on petrol sales.

A delegation of dealers also met Petroleum Minister Ali Pervaiz Malik in Islamabad earlier this week.

The minister had reportedly told the delegation that the Rs1.34 per litre increase had already been sent to the ECC and was awaiting approval.

Fuel price mechanism remains unchanged

Bakhsh also said petroleum prices could return to a seven- or 15-day revision cycle as tensions in the Middle East ease.

The government had recently moved to daily changes in petroleum prices.

It rejected the dealers’ demand for monthly price adjustments and said the daily pricing mechanism would continue.

The daily system replaced the weekly mechanism that had been used in previous months.

The PPDA’s decision to postpone the strike means petrol stations are expected to remain operational on Saturday, although the association has kept pressure on the government to address its remaining demands.