Talks with Government Deadlocked; Closure of Over 13,000 Petrol Stations May Extend Beyond Friday
- Government sets up monitoring cell to manage supply situation during strike
Islamabad: Petrol Dealers to Begin Nationwide Strike on July 5
The Pakistan Petroleum Dealers Association (PPDA) announced on Wednesday that its talks with provincial and federal governments and other stakeholders had hit a deadlock, leaving them with no option but to proceed with a nationwide closure on July 5 (tomorrow).
Unresolved Issues and Deadlocked Negotiations
“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 Dawn. 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“There would be no more talks with the government till the ‘unfair’ turnover tax was withdrawn,” Mr.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 stated that the double taxation was not only cruel but unconstitutional as well.
Closure of Over 13,000 Petrol Stations
Mr. Khan announced that more than 13,000 petrol stations would be closed from July 5 at 6am onward, and the strike could continue over the following days unless demands were met and notified. He appealed to the owners and operators of retail outlets to keep their stocks for July 4.
Government’s Response and Monitoring Cell
In response, the petroleum division set up a monitoring cell to oversee the fuel supply position and coordinate with stakeholders during the strike call of petroleum dealers. Representatives of oil marketing companies, Ogra, and the petroleum division had appointed focal persons to be part of the monitoring cell.
The petroleum division issued letters to OMCs “to ensure availability of sufficient stocks of petroleum products” at company-owned or company-operated and other associated sites of respective OMCs to avoid any disruption of the supply chain and inconvenience to the general public and industry.
Dealers’ Protest Against Turnover Tax
The dealers are protesting against the imposition of turnover tax in the recent budget. They argue that outlets were already paying advance fixed withholding tax at Rs1.4 per litre (about 12% of dealer commission) as final income tax and had been subjected to double taxation in the shape of 0.5% advance turnover tax now because of definitional issues of ‘dealers and distributors’.
Assurances and Legislative Hurdles
The FBR chairman had earlier on Tuesday assured the dealers that the turnover tax would be withdrawn. This, however, involved a long process. As the petroleum secretary explained, the turnover tax had been imposed through the Finance Act 2024-25, passed by parliament and endorsed by the president. To reverse this, a legislative process was required.
