Pakistan Petroleum Dealers Association (PPDA) has demanded withdrawal of additional cut in petroleum dealers' commission , saying it is hindering the future investment in the oil and gas sector. This was said by PPDA Chairman Abdul Sami Khan in a press conference along with other PPDA members here on Thursday.
He said the first the dealers' commission was cut by 30 paisas, which was further cut by 40 paisas in August 2006, thus during the last one year the dealers' commission was been cut by 79 paisas.
He said that industry was not able to survive under the structure of present commission, added that the Oil Gas Regulatory Authority (Ogra) had assured the PPDA that it would convey its demands to the Ministry of Petroleum.
Sami said that the reduction in profit margin on gasoline was unnecessary and the government should review its policy of discouraging the dealers, who were interested in investing funds for the development of petroleum sector.
He recalled that he raised this issue during a meeting at Islamabad, which was chaired by Ogra's acting Chairman Arshad Farooq. The meeting was attended 11 Oil Marketing Companies (OMC) representatives and CNG stations heads.
He said accused the OMCs of patronising the CNG stations and illegal depots (Dabba stations) to run businesses across country, which badly affected the petrol pumps business.
Moreover, the PPDA demanded of the government to install flow meter on oil tankers to check the actual quantity of the products, with the aim to provide actual quantity of products, as the dealers were being cheated by the OMC's suppliers. Sami said the lubricant dealers were being compelled to purchase lubricants at higher than market rates, otherwise the OMCs would stop the supply lubricant.
The PPDA also demanded the reduction in license fee by three paisas, which was earlier 11 paisa, he said, and added that lease rent should be revised by the OMCs in consultation with the dealers.
The PPDA suggested if the OMC was financing the site, then it should grant first lease for 10 years and then renew the lease after every three years with the of 25 percent raise in the rent, as provide by law, and added if dealer was the financier of the site, then the lease should be for three year and the renewal should be with collective decision of OMCs and financier.
Sami said that these issues had been raised before acting Chairman of Ogra, and added that chairman gave a positive response besides, directing the OMCs to facilitate the PPDA for resolution of the issue.
Sami further said Federal Board of Revenue (FBR) Chairman Abdullah Yousuf has issued directives to the Sales Tax Collectorate to collect sales tax from the petroleum dealers after every three months.
He said that the FBR Chairman had responded positively to PPDA delegation, which called on him in Islamabad, and added that PPDA members had been facilitated by submitting sales tax returns on quarterly basis, which had earlier been submitted on monthly basis, besides appreciating the PPDA efforts to put withholding tax.
He said that the PPDA also held a meeting with State Minister for Petroleum Naseer Mengal, Petroleum Secretary, Additional Secretary of Petroleum, Director General, Gas, and highlighted the PPDA's issues.
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