A piece of disturbing news for all citizens, All Pakistan Oil Tankers Contractors Association (APOTCA) has called a nationwide strike, suspending the supply of petroleum products to the whole country until further notice. You know what happens when the oil tankers go on strike. Petrol shortage, and sky-high fuel prices.
APOTCA has completely suspended the supply of oil. Even the tankers on their way to the petrol pumps have been halted and parked on the roads. The association is doing so to force the government to meet its demands.
Demands of APOTCA
There are a few issues that APOTCA wants to be resolved. First, the Oil Marketing Companies (OMCs) have introduced a computerized system instead of the “queue system”. They prioritize filling the oil tankers owned by influential people without observing the queue system under OGRA rules, impacting more than 15,000 registered tankers.
Second, the turnover tax has been increased to 3.5% from 2.5%, making it difficult for the contractors of oil tankers to do business. President APOTCA said that the federal government made a false promise to slash the tax rate on oil transportation to 2% from 3% in the Fiscal Year 2021-22.
Third, the Oil Marketing Companies carry out most of the oil transport through the White Oil Pipeline (WOP). Moreover, 70% of the fuel supply in the country goes through the Keamari oil terminal, and the oil tankers are not allowed to enter. APOTCA wants OMCs to supply 50% of the oil from roads through oil tankers and 50% from the WOP.
President APOTCA, Abdullah Afridi, says the strike would continue until they get:
- A queue system at the oil storage facilities
- Lower tax rate of 2%
- 50% quota in the oil transport
Response of APOTOA
The All Pakistan Oil Tankers Owners Association (APOTOA), on the other hand, has distanced itself from the strike. Vice-President APOTOA, Shams Shahwani, said that the computerized system is the only actual issue; the rest have been added just like that.
The situation has not yet gone out of control. There is still ample fuel supply at the petrol pumps. However, if the government does not take notice of the matter and sits down with the Oil Tankers Contractors Association and the strike prolongs, there could be a petrol shortage in the country. Hence, the government should be negotiating the terms with the association, if not already.
I do not think that the third demand is sensible one, as it is totally against business ethics. The association should be ashamed off itself for making such a demand. It is a sheer pigheadedness that is coming off of an untamed brain and the government must use force against the association if need arises. Do the uneducated association not know that one cannot goad a businessman to adopt a business option that can cause damage to self as well as country’s interest?