Petrol pumps only closed in Karachi as association remains divided

The Petrol Pump Dealers Association (PPDA) divided into factions as petroleum dealers in Karachi were observing a strike against a 0.5pc turnover tax, while Punjab agreed to negotiate with the authorities.

The official machinery has also appeared for easy availability of petrol, while some dealers were convinced to pass on the impact of turnover tax to consumers.

Meanwhile, oil marketing companies (OMCs) demanded a 60pc increase in profit margins.

Abdul Sami Khan, chairman of the PPDA, said that the petrol pumps will remain closed from 6am on Friday throughout the country.

However, the authorities directed all six petroleum division secretaries, including four provinces and Gilgit Baltistan and Azad and Jammu Kashmir, to allow oil tankers movement during the strike to ensure an uninterrupted fuel supply nationwide.

Additionally, it asked the provinces to open a maximum number of pumps and nominate a focal person for close coordination with dealers.

On the other hand, the petrol division and oil and gas regulatory authorities believed that the country had a sufficient quantity of petrol, which was adequate to ensure an uninterrupted supply to petrol pumps.

Sources claimed that in Islamabad, some officials not belonging to the petroleum division, finance ministry, and Ogra talked with dealers to convince them to end the strike.

The government representatives were deliberating to increase the dealers’ commission to compensate them for 0.5pc turnover tax. Dealers’ current commission is Rs8.64 per litre, which would be increased to Rs11.20.

Meanwhile, the OMCs also sought at least a 60pc increase in their profit margin on diesel and petrol sales to Rs12.65 per, currently, Rs7.87.

Apart from this, a dealers group from Lahore and Rawalpindi were not participating in today’s strike. They said they would prefer negotiation with authorities before opting for extreme operations.