KARACHI: Petroleum dealers on Wednesday rejected the current petrol relief scheme mechanism, saying they would not provide Rs100-per-litre subsidised fuel unless the federal government addresses reimbursement and operational concerns.
Pakistan Petroleum Dealers Association (PPDA) Vice Chairman Anwar Kamal told a Karachi press conference that dealers had not been consulted before the scheme was designed. He called for a simpler mechanism to deliver the subsidy to consumers.
Kamal questioned how dealers would recover the discount provided at pumps and said their working capital was already under pressure. The PPDA said it would not implement the scheme in its “current form.”
The federal government, however, says it will bear the entire subsidy cost. Deputy Prime Minister Ishaq Dar directed that petrol stations be reimbursed within 24 hours through the State Bank of Pakistan, according to an official statement on September 15.
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Prime Minister Shehbaz Sharif announced the scheme on September 13. Two- and three-wheelers are eligible for Rs100-per-litre relief on up to 20 litres a month, while non-commercial cars up to 800cc qualify on up to 30 litres a month.
Registration is available nationwide through SMS to 9771, with fuel tokens issued digitally. The government says the nationwide redemption system will begin at 11:59 p.m. on September 16, after an initial rollout in Islamabad.
The dispute follows earlier PPDA warnings that verification requirements could cause queues, expose dealers to fraud risks and create financial losses if reimbursements fail.
