Pakistan Petroleum Dealers Association Announces Nationwide Strike

Pakistan is on the brink of a petrol shortage as petrol pump owners across the country are gearing up for a strike set to begin on July 5. The strike has been called by the Pakistan Petroleum Dealers Association (PPDA) following failed negotiations with the government over the issue of advance tax.

The PPDA officials have expressed their discontent with the results of talks with government representatives, prompting them to announce a nationwide shutdown of fuel stations. The main demand of the petroleum dealers is the elimination of the advance income tax introduced in the 2024-25 budget. They argue that this tax could have detrimental effects on the petrol pump industry.

Dealers have highlighted the slim profit margins in the business, especially amidst rising inflation rates. They contend that the imposition of additional taxes would make running fuel stations financially unsustainable, essentially leading to double taxation. Of particular concern is the 0.5% advance tax on turnover included in the budget, which they believe is unwarranted since all commodity transactions are already taxed at the time of purchase and meticulously documented in the accounts of oil marketing companies and dealers.

The impending petrol shortage in Pakistan due to the upcoming strike by petrol pump owners underscores the critical need for a resolution between the government and the PPDA. The potential impact on the economy and daily life of citizens necessitates swift action to address the concerns raised by the dealers. As the situation unfolds, it is crucial for all stakeholders to engage in constructive dialogue to find a mutually beneficial solution that ensures the smooth functioning of the petrol pump industry while also meeting the revenue requirements of the government.