Petroleum retailers have declared a nationwide strike on July 5th (Friday) in protest of the implementation of a prepayment tax in the 2024-25 budget.

During a press conference, Abdul Samad Khan, the Chairman of the Pakistan Petroleum Dealers Association (PPDA), declared that if the government does not change its decision, all filling stations in the country will be closed.

There is concern that there may be a lack of availability of fuel and diesel across the country on Friday. The reliance of transportation services on these petroleum products makes them vulnerable to potential disruptions.
Khan voiced apprehensions regarding the 0.5 percent preliminary turnover tax incorporated in the Finance Bill 2024-25.

According to him, it would render petrol pumps inoperable. The individual requested that the authorities promptly eliminate it, otherwise “we will be compelled to cease operations.”

The National Assembly approved the Finance Bill 2024-25 in late June, which was formulated under the supervision of the International Monetary Fund (IMF).

The association announced on Wednesday that its negotiations with the provincial and federal governments were unsuccessful, resulting in the dealers deciding to keep their operations closed on Friday.

“Although they requested us to cancel the strike and assured us that they would address the issue, we cannot delay the strike based solely on their promises,” stated the chairman of the PPDA.

Khan stated that the group has held talks with high-ranking authorities, including members of the oil marketing corporations’ advisory board, yet the problems continue to exist.

He announced that starting on July 5 at 6am, a total of 13,000 gas stations would be shut down. The strike may persist in the subsequent days until the demands are realized and communicated.

He requested that the proprietors and managers of retail establishments retain their inventory on July 4th.

According to media sources, the petroleum division has established a monitoring cell to supervise the fuel supply situation and collaborate with relevant parties during the strike organized by petroleum dealers.

Focal individuals have been appointed by the representatives of oil marketing companies, Ogra, and the petroleum division for the monitoring cell.

The FBR chairman had provided assurance to the dealers that the turnover tax would be revoked. However, the petroleum secretary states that a legislative action is necessary to reverse the process.