Beware! Fuel stations across Pakistan to close at 6am tomorrow due to PPDA strike

Following the failure of negotiations between the government and petroleum dealers over the advance tax issue, the Pakistan Petroleum Dealers Association (PPDA) has announced a shutdown of all fuel stations on Friday (tomorrow).

The fuel stations will shutdown across Pakistan at 6 in the morning. 

Abdul Sami Khan, Chairman of the PPDA, stated, "We met with government officials in Islamabad, but the talks produced no results; hence, we will go on strike as announced earlier."

Petroleum dealers are demanding the withdrawal of the advance income tax imposed in the budget 2024-25, asserting that the tax would destroy the petrol pump business. They noted that they are already operating with a narrow profit margin amid high inflation.

Khan emphasized that they would be compelled to shut their businesses due to the unjust tax, stating there was “no way in the world to run fuel stations at a loss with double taxation.”

The PPDA expressed concerns about the budget’s 0.5% advance tax on turnover, highlighting that every transaction for the cost of commodities sold is already taxed at the time of purchase and recorded in the books of account of oil marketing businesses and dealers.

Thus, the PPDA urged that the clause be removed from the finance bill as soon as possible.

At a press conference on Tuesday, the PPDA chairman stated that he had informed the Ministry of Finance that they should not be treated like other sectors. He also warned of severe consequences if their businesses were forced to close.