The Pakistan Petroleum Dealers Association (PPDA) on Wednesday refused to support the prime minister’s fuel relief scheme until the payment mechanism for the subsidy to dealers is clarified and threatened to shut down petrol stations if the program is imposed on them.
PPDA Chairman Malik Khuda Bakhsh told a press conference that while the subsidy was “commendable” amidst rising global prices, its implementation mechanism was lacking. He said the government had yet to clarify who would pay the subsidy and urged authorities to clearly state which institution or agency would reimburse dealers.
The PPDA chairman demanded the fuel relief amount be paid directly to consumers, adding the previous mechanism used for fuel subsidies at the outbreak of the Iran-U.S. war should be restored. He also called for the fixing of petroleum product prices once a month instead of the current daily revisions.
Bakhsh demanded the government consult the petroleum dealers’ association over the relief scheme and increase dealers’ margin to 8%. He complained the association had been trying to contact the government for the past three days but had received no response.
The chairman also raised concerns over the increased cost and transit time involved in importing petroleum products through the Red Sea. He said transporting Saudi oil via the Red Sea route now takes more than 23 days, whereas petroleum products from Gulf countries previously reached Pakistan through the Strait of Hormuz in about a week.
During his talk, he also rejected imposing another “smart lockdown” in response to the fuel price crisis, claiming dealers cannot afford this, as it would severely affect business activity. He said such restrictions might have been understandable during the COVID-19 pandemic, but a smart lockdown is not a solution to the current crisis involving petroleum product prices.
Association Vice Chairman Anwar Kamal, meanwhile, said dealers would not join the scheme until the government clearly explained who would pay the subsidized amount and how the payments would be disbursed. “If the scheme is imposed on us, we will shut down fuel stations,” he warned.
He said the government formulated the fuel relief scheme without consulting petroleum dealers and reiterated that relief should be provided directly through a simple and transparent mechanism.
Reviewing progress
Separately, Prime Minister Shehbaz Sharif chaired a meeting to review progress on the fuel subsidy, noting it aimed to provide relief to low-income and middle class citizens amidst rising fuel prices.
He directed the establishment of facilitation desks comprising administration officials, volunteers and petrol pump staff to assist citizens in easily obtaining the subsidy. Personnel deployed at the facilitation desks, he said, should guide eligible citizens and provide them with all possible assistance in registration and other necessary procedures. He also directed relevant authorities to remain proactive in raising public awareness about the scheme.
The meeting was briefed on progress regarding the fuel subsidy scheme, noting it had launched nationwide after a pilot phase in Islamabad. It was informed the scheme was designed in a simple and easy manner for the public to understand. Only four pieces of information were required for registration: the applicant’s CNIC number, vehicle number plate, province of registration and vehicle registration date.
Complete details of the fuel subsidy scheme are available on its Urdu website, www.pmfuelrelief.pk.
Officials claimed the number of successful registrations was gradually increasing, while provincial governments were extending full cooperation for nationwide implementation of the scheme.
The Prime Minister’s Fuel Relief Scheme, announced on Sept. 13, provides a Rs. 100/liter petrol subsidy to eligible motorcycles, rickshaws, other two- and three-wheelers and cars of up to 800cc.