Pakistan Petroleum Dealers Association says the current mechanism is difficult to implement and places financial pressure on dealers.
Web Desk: Pakistan’s petroleum dealers have refused to sell petrol under the government’s newly launched Rs100-per-litre fuel relief scheme, citing concerns over its implementation mechanism, reimbursement process and the financial burden on filling station operators.
The Pakistan Petroleum Dealers Association (PPDA) announced its position on Wednesday during a press conference in Karachi.
PPDA Vice Chairman Anwar Kamal said dealers were not consulted while the scheme was being prepared and argued that the current mechanism would be difficult to implement at petrol stations.
Dealers question reimbursement mechanism
Kamal said dealers were already facing financial pressure because of inflation and pending payments from oil marketing companies.
He questioned how dealers would receive the difference for petrol sold at the subsidised rate and said the financial burden of the government’s relief programme could not be shifted onto petrol station operators.
The association also demanded an increase in dealers’ margins and said its members would not sell petrol under the relief scheme in its current form.
What is the government’s fuel relief scheme?
The federal government launched the scheme on September 13 to provide Rs100 per litre in petrol relief to eligible consumers amid higher fuel prices linked to tensions in the Middle East.
Under the programme, motorcycles, rickshaws and other two- and three-wheelers are eligible for relief on up to 20 litres of petrol per month.
Small cars with engines of up to 800cc are eligible for the Rs100-per-litre relief on up to 30 litres per month.
Earlier concerns over implementation
Petroleum dealers had already raised concerns about the scheme’s proposed verification process, including the risk of fraudulent claims and the practical difficulty of checking documents and invoices at busy petrol stations.
The PPDA previously warned that large queues could develop if petrol station staff had to manually verify beneficiaries, potentially causing delays for consumers and operational difficulties for filling stations.
The association had proposed that the relief mechanism be administered through the government and oil marketing companies rather than placing financial responsibility directly on dealers.
Government reviews implementation
The latest dispute comes as the government works to implement the fuel relief programme nationwide.
Deputy Prime Minister and Foreign Minister Ishaq Dar chaired a meeting a day earlier to review administrative arrangements and directed authorities to ensure a simple registration process and smooth implementation of the scheme.
The immediate issue is whether the government and petroleum dealers can agree on a mechanism that allows eligible consumers to receive the announced relief without placing unreimbursed costs or additional operational burdens on filling stations.
The PPDA says it will not implement the scheme in its current form, while the government has yet to publicly announce a revised mechanism addressing the dealers’ latest concerns.
