Oil Tanker Contractors Association ends strike after successful negotiation

KARACHI: The Oil Tanker Contractors Association announced to end the strike on Tuesday after its successful negotiation with the Ministry of Petroleum and Natural Resources, according to association chairman Obaidullah Afridi.

The Oil Tanker Contractors Association were earlier on a strike against the service sales tax. The government assured the association that recovery of the tax has been postponed until June 30.

As many as 20 per cent of petrol stations in the city were said to have dried out on Tuesday morning, while the long-standing tax dispute threatening disruption of the countrywide supply chain.

According to reports, some petrol pumps of Pakistan State Oil, a government-run company, had also dried out. Otherwise, PSO would supply fuel in times of shortage.

People in the city were facing trouble in getting their vehicles refuelled given the unavailability of petrol.

Speaking to Geo News, a man pushing his motorbike said he had to walk with his vehicle to cover a long distance which would be tedious more so because of the scorching weather.

The provincial and federal government had failed to come up with a solution to the issue for over two years.

The shortage was said to be an outcome of the dispute between the Oil Tanker Contractors Association and the Ministry of Petroleum and Natural Resources over the implementation of services sales tax.

The Oil Tanker Contractors Association were on a strike against the tax till this report was filed.

The strike was postponed for a day, but resumed although the petroleum ministry had appealed through a letter to the respective chief secretaries of Punjab and Sindh to delay the collection of services sales tax under the 18th Amendment until June 30.

The ministry issued a statement, showing concern that the strike may pose a serious threat to the country's oil reserves.

آئل ٹینکرز کی ہڑتال، کراچی میں پیٹرول قلت کی شکایت ۔ کراچی میں 10 سے 20 فیصد پیٹرول پمپس سے پٹرول غائب ۔۔۔

After the 18th Amendment, the provinces were delegated with the powers 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.