Petrol shortage looms in Pakistan as dealers announce strike from July 5

Pakistanis brace for massive petrol shortage as nationwide petrol pumps strike is set to start from July 5 (Friday).

The nationwide strike is slated to start as talks between government and petroleum dealers failed over advance tax issue, leading the association to announce a countrywide shutdown of fuel stations.

Pakistan Petroleum Dealers Association (PPDA) officials told media that their meeting with government officials remains unproductive, and they will continue strike as planned.

Petroleum dealers are demanding withdrawal of advance income tax introduced in 2024-25 budget, arguing that it would devastate petrol pump industry. It also highlighted business already operates on slim profit margins amidst record inflation.

Dealers lamented unfair tax, saying there is no way to run fuel stations at a loss with double taxation. They also raised concerns about 0.5pc advance tax on turnover in the budget, noting that every transaction for commodity costs is already taxed at the time of purchase and recorded in the accounts of oil marketing businesses and dealers.