Thursday, October 8, 2026

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Petroleum Dealers Agree to Implement Fuel Subsidy after Talks with Government

Petroleum dealers have started implementing the prime minister’s fuel relief package following successful negotiations with the government, the Pakistan Petroleum Dealers Association (PPDA) announced on Thursday.

A day earlier, the PPDA had warned it would not implement the subsidy scheme—which grants Rs. 100/liter relief to motorcyclists, rickshaw owners and drivers of vehicles up to 800cc—citing concerns over its implementation mechanism and lack of clarity on clearing dues of dealers.

Addressing a press conference after successful negotiations with the government, All Pakistan Petrol Pump Owners Association Vice Chairman Nauman Butt said the authorities had addressed all their concerns regarding the fuel subsidy scheme. He said petrol pump owners had no objection to the subsidy scheme, but had concerns over the mechanism for receiving the subsidy payments. Following talks with the government, those concerns have now been resolved, he added.

Butt said the government had assured the association the subsidy amount would be reimbursed within 24 hours, adding payments would be made through the State Bank of Pakistan and the funds had already reached the central bank.

As part of the relief, the government has also waived SMS fees for registration in the petrol subsidy scheme. After initially launching as a pilot program in Islamabad, the scheme has now expanded nationwide, including in Azad Jammu and Kashmir and Gilgit-Baltistan.

To register, applicants need to send an SMS to 9771 by typing “REG,” followed by a space, their CNIC number, vehicle number plate, the first letter of the province where the vehicle is registered, and the vehicle registration date. Eligible applicants would then be able to receive Rs. 100/liter discount on petrol for motorcyclists, rickshaw owners and drivers of vehicles up to 800cc.

Owners and users of motorcycles, rickshaws and other two- and three-wheeled vehicles would receive Rs. 100/liter relief on up to 20 liters of petrol per month, while users of small vehicles up to 800cc engine capacity would receive Rs. 100/liter relief on up to 30 liters of petrol per month.