The Pakistan Petroleum Dealers Association (PPDA) called off their strike late Friday night after successful negotiations with the federal government. The strike, initially observed partially across the country, was in response to a 0.5% turnover tax imposed in the federal budget 2024-25.
PPDA General Secretary Nouman Butt announced that the agreement addressed their concerns regarding Section 136H of the Finance Act 2024, which regulates the sector’s income tax. He expressed gratitude to the Federal Board of Revenue (FBR) chairman, the Petroleum Division secretary, and the Oil and Gas Regulatory Authority (Ogra) chairman for their cooperation.
Despite the initial call for a strike by PPDA Chairman Abdul Sami Khan, some association leaders opted for further negotiations rather than an immediate, indefinite strike. Consequently, petrol pumps in Karachi were partially closed, while many in Lahore and Lodhran continued operations as usual.
Ogra and the Petroleum Division assured the public that petroleum products would remain available nationwide and that they had engaged with the FBR and Finance Division to address the PPDA’s concerns.
Separately, the National Electric Power Regulatory Authority (Nepra) announced a Rs3.3287 per unit hike in electricity prices for May 2024 due to monthly fuel charges adjustment (FCA). This increase will be reflected in July 2024 bills for ex-Wapda Distribution Companies (XWDISCOs) but excludes Electric Vehicle Charging Stations (EVCS) and lifeline consumers. In contrast, K-Electric consumers in Karachi will receive a Rs1.6716 per unit relief for April 2024. This relief excludes EVCS, lifeline consumers, agricultural consumers, and domestic consumers using up to 300 units of electricity.
These developments occur as the federal cabinet raised electricity tariffs to meet International Monetary Fund (IMF) conditions for a $6 billion bailout. Pakistan aims to achieve a tax revenue target of Rs13 trillion for the fiscal year starting July 1, a significant increase to reduce the fiscal deficit from 7.4% to 5.9% of GDP.
