Thai authorities delay new fuel tax after operators go on strike

Provincial administration organizations (PAOs) in the three southern border provinces of Thailand have postponed the imposition of the new fuel tax after operators went on protest in furore over the new regulation, reported the Bangkok Post.

Thai motorists faced dry pumps in gas stations on Monday as operators went on in protest against the imposition of a new local tax on fuel sales.

The protest was in response to the refusal of the PAOs to delay the new tax on fuel sales. As most gas stations in the southern border provinces closed their fuel pumps, many motorists who needed to top-up their tanks were left in despair.

Fuel station operators complained the PAOs did not include them in the conversations about the new tax law, which sets an increased 5-satang per litre tax on all kinds of fuel, and was effective from July 13.

The increased tax revenues are to be used by authorities for local development.

Operators are requesting new conversations with local authorities and oil companies to find a more suitable tax for fuel distribution, which doesn´t place such a burden on drivers and gas station owners.

Many motorists took to the black market to buy the necessary fuel, which is mostly smuggled from Malaysia. Some said the increased tax would only encourage drivers to find fuel from illegal sources.