The Pakistan Petroleum Dealers Association (PPDA) has declared a nationwide closure of petrol stations starting on July 5, following unsuccessful negotiations with provincial and federal governments and other key stakeholders. The association’s decision comes after extensive but unfruitful discussions, leaving them no choice but to proceed with the strike.
PPDA Chairman, Abdul Sami Khan, explained the impasse, stating, “They asked us to call off the strike and promised to resolve the issue, but we cannot postpone the strike on mere assurances.” Despite meeting nearly every relevant government official, including high-level figures such as the finance minister, the chairman of the Federal Board of Revenue, the Oil and Gas Regulatory Authority (OGRA) chief, the petroleum secretary, and representatives of the oil marketing companies’ advisory council, the dealers’ grievances remain unaddressed.
Khan emphasized that the association will not engage in further talks with the government until the “unfair” turnover tax is withdrawn. He highlighted that the current taxation system, which he described as both cruel and unconstitutional, was a significant burden on petrol dealers. “There would be no more talks with the government till the ‘unfair’ turnover tax was withdrawn,” Khan asserted, adding that petrol stations would start drying out on Thursday if their demands were not met.
The PPDA has called for more than 13,000 petrol stations across the country to close from 6 a.m. on July 5, potentially extending the strike over subsequent days if their demands are not met and officially notified. Khan appealed to the owners and operators of retail outlets to manage their stocks carefully, ensuring they have sufficient supplies for July 4 before the shutdown begins.
The turnover tax, according to the PPDA, represents double taxation, which has significantly impacted their operations. The association has been vocal about the financial strain this tax places on petrol dealers, arguing that it not only undermines their businesses but also violates constitutional principles. The deadlock in negotiations has led to frustration among the dealers, who feel their concerns have been continuously overlooked.
Khan’s declaration of the strike has raised significant concerns among consumers and the broader public, who are now bracing for potential fuel shortages. The announcement has sparked fears of long queues and panic buying at petrol stations ahead of the planned shutdown. The PPDA’s call for a nationwide strike underscores the depth of the crisis and the urgency with which the association is seeking a resolution.
The government, on its part, has urged the PPDA to reconsider the strike, promising to address the issues raised by the association. However, the lack of concrete action and the repeated assurances without substantial progress have eroded the dealers’ trust in the government’s commitments.
As the situation escalates, there are calls for immediate intervention from higher authorities to mediate and find a swift resolution to the dispute. The impending strike threatens to disrupt daily life and economic activities across Pakistan, highlighting the critical need for a balanced and fair resolution that addresses the concerns of the petrol dealers while ensuring uninterrupted fuel supply to consumers.
The PPDA’s stance reflects a broader sentiment of dissatisfaction among various business sectors dealing with similar issues of taxation and regulatory challenges. The association’s decision to strike is a significant step, demonstrating their resolve to push for systemic changes that would alleviate their financial burdens and ensure a fair operating environment.
