The Pakistan Petroleum Dealers Association has declared a nationwide strike of petrol pumps starting July 5 in response to the government’s introduction of a new 0.5% advance tax on petrol sales. Chairman Abdul Sami Khan has expressed deep apprehension regarding the implications of this tax.
Khan emphasized that when combined with already slim profit margins and a backdrop of high inflation, the new tax is exerting tremendous pressure on their business operations. According to him, sustaining their businesses under these conditions has become increasingly challenging for the dealers.
Despite multiple discussions with the Finance Minister, the association has not received satisfactory resolutions or assurances. Khan conveyed the dealers’ frustration, noting that their concerns have not been adequately addressed by the government.
In a bid to avert the planned strike, Khan urged the government to repeal the 0.5% advance tax within the next four days. He underscored that continuing to operate petrol pumps under these financial constraints is untenable for the dealers. Should the tax remain unchanged, the dealers are prepared to proceed with the strike, which could disrupt the supply of petrol nationwide.
The potential ramifications of such a strike are significant, affecting both the general public and the economy at large. The closure of petrol pumps across the country would cause widespread inconvenience and could potentially lead to shortages.
Khan stressed that the strike is a measure of last resort and expressed hope that the government would take immediate steps to address their grievances and prevent the strike from occurring.