Islamabad, July 5, 2024: In a move to mitigate disruptions caused by a planned strike by the Pakistan Petroleum Dealer’s Association (PPDA), the Petroleum Division has taken steps to ensure an uninterrupted fuel supply across the country.
The PPDA had announced the closure of all petrol stations, except for those in Islamabad, on July 5th to protest the imposition of a 0.5% advance income tax in the recent budget. However, a joint statement released late Thursday by the Oil and Gas Regulatory Authority (Ogra) and the Petroleum Division assured the public that “adequate supplies of petroleum products” are available and “all Oil Marketing Companies (OMCs)” have been directed to maintain normal operations at petrol pumps.
Measures to Minimize Strike Impact
The Petroleum Division outlined additional measures to minimize the impact of the strike. These include:
• Instructing Ogra, the Oil Companies Advisory Committee (OCAC), the Oil Marketing Advisory Council (OMAP), and all OMCs to ensure the operation of company-operated retail outlets and affiliated sites. These sites will have “sufficient stocks of petroleum products” to cater to public needs.
• Establishing a monitoring cell within the Petroleum Division’s Directorate General (Oil) to oversee fuel supply and facilitate coordination among stakeholders during the strike.
• Mobilization of Ogra’s monitoring teams to track the situation and take necessary corrective actions.
• Requesting provincial Chief Secretaries to take appropriate measures to keep the maximum number of retail outlets open. Additionally, authorities have urged permission for the movement of oil tankers during the day to replenish stocks at operational pumps.
PPDA Demands Withdrawal of Tax
The PPDA justifies the strike action by citing the detrimental effect of the advance income tax on their business. According to PPDA chairman Abdul Sami Khan, negotiations with the government failed to yield a solution, leaving them with no choice but to strike. Khan argues that the tax, coupled with existing low profit margins and high inflation, would render the petrol pump business unsustainable. He emphasized the impracticality of operating at a loss due to “double taxation,” as the cost of commodities is already taxed upon purchase.
The coming hours will reveal the effectiveness of the government’s measures in ensuring normal fuel availability during the PPDA’s strike.