The Pakistan Petroleum Dealers Association (PPDA) has announced a nationwide strike on July 5 after talks with the government failed over a turnover tax which the dealers consider unfair and unconstitutional.
Over 13,000 petrol stations will be closed because of the strike. The government has set up a monitoring cell to manage the situation, but reversing the tax will need a legislative process.
“They asked us to call off the strike and promised to resolve the issue, but we cannot postpone the strike on mere assurances,” PPDA chairman Abdul Sami Khan said while speaking to Media.
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He explained that he met almost every stakeholder in the government, including those he could not name, besides the finance minister, chairman of the Federal Board of Revenue, Oil and Gas Regulatory Authority chief, petroleum secretary and representatives of the oil marketing companies’ advisory council, but dealers’ complaints remained unaddressed.
“There would be no more talks with the government till the ‘unfair’ turnover tax was withdrawn,” Mr Khan said, adding the pumps would start drying out on Thursday. He said the double taxation was not only cruel but unconstitutional as well.
He announced that over 13,000 petrol stations will close from 6 am on July 5. The strike could continue until their demands are met and officially acknowledged. He urged retail outlet owners and operators to save their stocks for July 4.
In response, the Petroleum Ministry has set up a monitoring cell. This cell will oversee fuel supplies and coordinate with stakeholders during the strike. Representatives from oil marketing companies, the Oil and Gas Regulatory Authority, and the petroleum division have appointed focal persons for this cell.
The ministry also issued directives to oil marketing companies. They must ensure sufficient stocks of petroleum products at company-owned or operated sites. This is to avoid supply chain disruptions and inconvenience to the public and industry.
