The nationwide strike by goods transporters and oil tankers is an alarming development that the government cannot afford to ignore. With hundreds of thousands of vehicles off the roads, the disruption is already beginning to affect industrial and export supply chains. If the deadlock continues, factories could run short of raw materials, export consignments could miss deadlines and the resulting losses would eventually be felt by workers, businesses and consumers alike.
The government must immediately engage with the transporters rather than allowing the situation to deteriorate. Their demands should not simply be dismissed as another pressure tactic. Some of their concerns are genuine and deserve serious consideration. We had highlighted in our previous editorials the problems that daily adjustments in petroleum prices could create problems for transporters and other segments of society. A vehicle carrying goods between cities may take one to three days to complete a journey. It is hardly practical for transporters to determine freight rates when their major operating cost fuel can change from one day to the next. The uncertainty makes it difficult for both transporters and industries to plan their costs and commitments. Their concerns about the 7pc withholding tax, compared with the 2pc applicable to oil carriers, also merit examination. At the same time, the transporters must recognize the wider consequences of a prolonged strike. Any further disruption in the movement of raw materials and finished goods could force factories to slow or suspend production. Exporters, meanwhile, could face cancelled orders and damage to their hard-earned markets. There is also a direct cost to ordinary people. When the movement of food, fuel and other essential commodities is disrupted, shortages can emerge and prices can rise. The transportes should also keep the interests of the wider economy in mind and avoid an open-ended disruption. The government should sit down with the transporters’ representatives without delay, examine each of their demands on merit and work towards practical solutions.
