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Government Orders OMCs to Maintain Fuel Supply Amid Petrol Dealers’ Strike

Petrol Dealers’ Strike

ISLAMABAD: In response to the strike announced by the Pakistan Petroleum Dealers’ Association (PPDA), the Petroleum Division has instructed the Oil and Gas Regulatory Authority (Ogra) and oil marketing companies (OMC) to ensure continuous fuel availability at petrol stations nationwide.

A joint statement from Ogra and the Petroleum Division, released late Thursday, emphasized that OMCs have been directed to maintain sufficient petroleum supplies at all operational petrol pumps.

“All Oil Marketing Companies have been advised to ensure adequate supplies of petroleum products at petrol pumps and to keep them open. It is important to note that there is sufficient availability of petroleum products in the country,” the statement read.

In a separate announcement, the Petroleum Division outlined measures to mitigate the impact of the strike. “Ogra, OCAC, OMAP, and all OMCs have been advised to ensure that company-operated retail sites as well as other associated sites of OMCs remain operational and have sufficient stocks of petroleum products to minimize the impact of the strike.”

The strike, prompted by the breakdown of negotiations between the government and petroleum dealers regarding an advance tax issue, is set to shut down all fuel stations across Pakistan, except in Islamabad, starting today (Friday).

The Petroleum Division has established a monitoring cell within the DG (Oil) office to oversee fuel supply and coordinate with stakeholders during the strike. Concurrently, Ogra will deploy monitoring teams to assess the situation and take necessary actions.

To support the public, the Petroleum Division has requested all chief secretaries to ensure that as many retail outlets as possible remain open.

Additionally, oil tankers have been permitted to operate during daytime to replenish stocks at open retail sites.

PPDA’s Abdul Sami Khan, announcing the strike, said, “We met government officials in Islamabad, but the talks produced no results, hence, we will go on strike as announced earlier.”

The association is demanding the withdrawal of the advance income tax imposed in the 2024-25 budget, claiming that it would devastate the petrol pump business, already struggling with low profit margins and high inflation.

Khan highlighted that the new 0.5% advance tax on turnover, as per the budget, would impose an additional burden on businesses.

The PPDA argues that every transaction is already taxed at the point of purchase and recorded in the accounts of oil marketing companies and dealers, making the additional tax untenable. They assert that operating fuel stations at a loss due to double taxation is unsustainable.

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