Fuel strike: Petroleum dealers divided as govt tactics come into play

KARACHI – The government machinery appears to have formalized divisions among protesting petroleum dealers by offering some higher commissions on sales of petroleum products, potentially passing on the impact of turnover tax to consumers.

Amidst these developments, oil marketing companies (OMCs) are lobbying for a 60% increase in their profit margins.

Abdul Sami Khan, chairman of the Pakistan Petroleum Dealers Association (PPDA), announced fuel pumps nationwide would shut down from 6am on Friday. He mentioned unnamed individuals resorting to intimidation tactics.

Simultaneously, the petroleum division has urged all provincial chief secretaries to permit oil tanker operations during the day on July 5, ensuring continuous supply to retail outlets in case of a strike. Normally, daytime oil tanker movements are restricted.

The division also requested provincial governments to facilitate maximum pump openings and appoint focal persons for coordination.

Oil marketing companies have been instructed to keep their outlets operational during the strike and maintain communication with the Ministry of Energy’s monitoring cell.

Government representatives hinted at potential increases in dealer commissions to offset the 0.5% turnover tax, proposing an increase from the current Rs8.64 per liter to at least Rs11.20.

Meanwhile, a large number of petrol pumps in Karachi remained close Friday morning, however, some were still running the business as usual particularly on the University Road and Sharea Faisal.

Whereas, fuel stations in Lahore outrightly did not observe the strike as the Petroleum Dealers Association Punjab said despite collapsing of the negotiations with the government, they would not shut down petrol pumps as yet.

 https://en.dailypakistan.com.pk/05-Jul-2024/petroleum-division-orders-omcs-to-ensure-fuel-availability-amid-dealer-strike