Provincial administration organisations (PAOs) in the three southern border provinces have agreed to delay imposing a new local tax on fuel sales, which led to a brief protest by local pump stations Monday.
Motorists in Pattani, Yala and Narathiwat were left high and dry Monday morning after most pumps in the area were closed in protest at the refusal of the PAOs to delay imposition of the tax.
Only a few pumps remained open. The sudden closure caused problems for bewildered motorists needing to top up their tanks.
The protest prompted an urgent meeting at the Narathiwat provincial hall between the PAO, petrol retailers and state agencies.
After three hours, Narathiwat governor Natthapong Sirichana said the PAO decided to postpone the tax indefinitely.
Pump stations complained that if they passed the tax burden on to motorists, it would hurt sales and motorists might turn to cheaper contraband oil.
The pump stations which closed in protest earlier Monday re-opened after a few hours.
The PAOs of Pattani, Yala and Narathiwat in October last year issued an ordinance to levy a 5-satang per litre tax on all kinds of fuel, including liquified petroleum gas for vehicles, effective from Monday.
The tax revenue, which increased prices at the pump, is to be used by the PAOs for local development.
Angry fuel station operators said the PAOs imposed the tax without asking for the people's opinions.
Oil traders in the three provinces had asked the PAOs to delay the local tax until a more suitable rate could be agreed on. Their request was initially rejected by the PAOs. In response, the traders declared they would close their pumps to protest.
In Yala, only one Caltex fuel station, on Pipitpakdi Road in Muang district, remained open Monday morning.
A long queue of cars, pickup trucks, cargo trucks and motorcycles formed on the road, causing a major traffic jam. Police were sent to the pump to direct traffic.
Motorists in the queue said huge numbers of people had been affected because some households had several vehicles they used for different purposes.
The economy would be hit if pumps remained closed for much longer, they said.