Petrol pumps across Pakistan have been forced to close their doors from 6 a.m. today, following a nationwide strike initiated by the Pakistan Petroleum Dealers Association (PPDA). This drastic measure comes after negotiations with both provincial and federal authorities regarding a newly implemented tax reached a stalemate.
The PPDA Chairman, Abdul Sami Khan, revealed in an interview with Dawn that over 13,000 petrol stations throughout the country will remain closed until their demands are addressed. He also urged petrol station owners and operators to ensure adequate petrol supplies are maintained during the strike.
This strike is a direct response to the Shehbaz Sharif government’s introduction of a turnover tax in the recent budget. The petrol dealers argue that this new tax constitutes double taxation, adding to their existing tax obligations, including a fixed withholding tax. The additional 0.5 percent turnover tax, they claim, has become an unbearable burden.
Abdul Sami Khan expressed his frustration over the lack of progress despite extensive discussions with government officials. He emphasized that the organization is not willing to end the strike based on mere promises. Khan stated in an interview with Dawn, “They asked us to call off the strike and assured us of resolving the issue, but we cannot delay our action based on mere assurances.”
Several high-ranking officials participated in the discussions, including Malik Amjad Zubair Tiwana, Chairman of the Federal Board of Revenue (FBR), the chief of the Oil and Gas Regulatory Authority (Ogra), the petroleum secretary, and representatives from the oil marketing companies’ advisory council. However, Khan lamented that the dealers’ concerns were disregarded.
Khan further asserted that the double tax regime is not only unfair but also unconstitutional. In a firm statement to Dawn, he declared, “We will not entertain further discussions with the government until the unjust turnover tax is withdrawn.”
In response to the strike, the Pakistan government’s petrol division has deployed representatives from oil marketing companies (OMCs) and Ogra to connect with stakeholders and oversee the supply chain. The petroleum division has issued directives to OMCs to ensure sufficient stocks of petroleum products are maintained at designated sites.
Earlier, Malik Amjad had offered assurance regarding the tax’s withdrawal, albeit through legislative amendments. However, Momin Agha, the petroleum secretary, clarified that the imposition of the turnover tax is already in effect through the Finance Act 2024-25, as reported by Dawn.
