Traders explain strike as pumps reopen in far South

Traders explain strike as pumps reopen in far South

Commuters in Yala queue to fill their tanks at the Caltex petrol station on Pipitbhakdi Road in Muang district, the only station that remained open in the southern province on July 13, 2015. (Photo by Muhamud Ayub Pathan)
Commuters in Yala queue to fill their tanks at the Caltex petrol station on Pipitbhakdi Road in Muang district, the only station that remained open in the southern province on July 13, 2015. (Photo by Muhamud Ayub Pathan)

As fuel pumps reopened in the far South on Tuesday, the oil traders group apologised to motorists and explained why they felt it necessary to close their outlets on Monday in protest at a new "unfair" local government tax.

The closure caused chaos in Pattani, Yala and Narathiwat as motorists formed long queues at the few pumps that remained open, blocking traffic, and sales of smuggled fuel openly flourished.

The oil traders ended their protest late yesterday after the provincial administration organisations of the three provinces agreed to delay their new local tax on all sales at fuel pumps.

In a statement on Tuesday, the oil traders apologised for their action, and explained why they felt it necessary to close their retail outlets.

The PAOs of Pattani, Yala and Narathiwat in October last year issued an ordinance levying a 5-satang per litre tax on all kinds of fuel, including liquefied petroleum gas for vehicles, effective from yesterday.

The oil retailers said under the ordinance only motorists who buy fuel from retail pumps would be hit by the surcharge. The new levy did not affect major consumers, mostly large companies that receive deliveries directly from suppliers, not from retail stations.

If major oil consumers were similarly taxed, the PAOs would collect four or five times as much revenue as  they would get from fuel pump customers alone, the traders said.

"The group of oil traders spent several months asking the PAOs to alter the tax collection method, but no action has been taken.

"If we did not show our strength, an amendment to the ordinance would not be possible," the statement said.

It was believed a revised levy would be announced in 2-6 months, the traders said.

Somying Chairatanamanokorn, chairwoman of the oil traders group, said it was hoped an amendment to the ordinance would result in a fair and just levy for all.

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