Petroleum dealers on Wednesday refused to sell subsidised petrol under the government’s Rs100-per-litre relief scheme, citing reimbursement concerns and financial pressure.
The Pakistan Petroleum Dealers Association’s objections came hours before the planned nationwide rollout at 11:59pm on September 16. The scheme covers motorcyclists, rickshaw users and drivers of vehicles with engine capacities up to 800cc.
PPDA Vice Chairman Anwar Kamal said the government had prepared the scheme without consulting dealers. Speaking at a Karachi press conference, he called its existing implementation mechanism difficult to follow.
Dealers question reimbursement mechanism
“We have reservations about the mechanism of the relief scheme,” Kamal said.
He urged the government to deliver assistance directly to consumers through a simple process. Dealers already faced pressure on their working capital because of inflation, he added.
Kamal also said oil marketing companies owed dealers billions of rupees in outstanding payments.
“Putting the financial burden of the relief scheme on dealers is not workable,” he said.
The association demanded higher dealer margins to help address rising operating costs.
“How will the government pay dealers the amount for cheaper petrol?” Kamal questioned.
He said dealers had contacted the government over the previous three days but received no response. He reiterated that they would not participate in the scheme in its “current form”.
The announcement concerned sales under the subsidy mechanism. It did not establish that dealers would stop ordinary fuel sales.
Monthly relief of up to Rs3,000
Prime Minister Shehbaz Sharif announced the scheme on September 13 amid rising fuel prices linked to Middle East tensions.
He said the government recognised the pressure on households and would not leave people alone during difficult times.
“We are launching a special scheme to reduce the burden of rising fuel prices on those using motorcycles, rickshaws, Chingchis and small vehicles,” he said.
Motorcycle, rickshaw and other two- and three-wheeler users qualify for a Rs100-per-litre discount on up to 20 litres monthly.
That provides maximum monthly relief of Rs2,000. Eligible vehicles up to 800cc qualify for 30 litres, equivalent to Rs3,000 in monthly savings.
The government had already introduced the scheme in Islamabad before scheduling its nationwide expansion.
Government orders payments within 24 hours
Deputy Prime Minister and Foreign Minister Ishaq Dar reviewed rollout arrangements on Tuesday. He directed authorities to keep registration simple and accessible.
Dar also ordered stronger public outreach and smooth implementation at petrol stations. He asked elected representatives to explain the scheme and help citizens register.
He directed officials to involve Prime Minister’s Youth Programme volunteers in awareness and registration activities.
Separately, Radio Pakistan reported that Dar had ordered settlement of fuel-station payments within 24 hours through the State Bank of Pakistan. Provinces also received instructions to complete district-level outreach.
Registration was available nationwide through SMS to 9771, with token redemption scheduled for midnight between Wednesday and Thursday.
The dealers’ objections indicate that the reimbursement directive had not resolved their concerns about implementing the scheme.
