Up to 20pc of petrol stations in Karachi have been reported to have dried out on Tuesday morning, owing to a long-standing tax dispute threatening to disrupt the nationwide supply chain, media sources have reported. Moreover, the situation is likely to aggravate if a resolution to the impending problem is not reached.
Pakistan Petroleum Dealers Association Chairperson Abdul Sami Khan is reported to have said that petrol was available at various fuel stations across the city. However, fuel shortage was reported at privately-owned petrol pumps. According to reports, some petrol pumps of Pakistan State Oil, a state-owned and run company, also reported shortage.
Negotiations over the issue are likely to be held today. The shortage of petrol has resulted from a breakout of dispute between the Oil Tanker Contractors Association and the Ministry of Petroleum and Natural Resources over the implementation of 16pc services sales tax.The Oil Tanker Contractors Association are reported to be on a strike against the tax.
The Oil Tanker Contractors Association had postponed the strike by a day but resumed despite the petroleum ministry appealing through a letter to the respective chief secretaries of Punjab and Sindh to postpone the collection of services sales tax under the 18th Amendment until June 30.
The ministry also showed concern as the proposed strike would pose a threat to the country’s oil reserves.
Following the 18th Amendment, the provinces were entrusted with the power to collect sales tax from the federation. Sindh Revenue Board was the first to start functioning followed by Punjab, Khyber Pakhtunkhwa and Balochistan.
Oil tankers transport edible oil, furnace oil, diesel, petrol, kerosene oil, and jet fuel throughout the country.
