Fuel Dealers Threaten Shutdown Over Subsidy Payment Mechanism

The Pakistan Petroleum Dealers Association (PPDA) has refused to participate in the federal government’s fuel relief scheme until authorities clarify how dealers will be reimbursed for the subsidies, warning that petrol stations could shut down if the programme is imposed without a clear payment mechanism.

 

Under the Prime Minister’s Fuel Relief Scheme, eligible motorcycles, rickshaws, two- and three-wheelers, and cars with engines up to 800cc are entitled to a Rs100-per-litre petrol subsidy.

 

PPDA Chairman Malik Khuda Bakhsh said the scheme was a positive initiative but raised concerns over its implementation. The association has demanded that the subsidy be paid directly to consumers and called for consultations with dealers before implementation.

 

The PPDA also called for dealers’ margins to be increased to 8% and urged the government to return to a monthly fuel price revision mechanism.

 

Dealers said their working capital is already under pressure, with billions of rupees reportedly outstanding from oil marketing companies. They warned that the proposed subsidy mechanism could further strain the finances of around 14,000 dealers nationwide.

 

Meanwhile, Prime Minister Shehbaz Sharif directed authorities to establish facilitation desks at petrol stations to help eligible citizens register for the scheme.

 

The programme, initially piloted in Islamabad, has now been expanded nationwide, including Azad Jammu and Kashmir and Gilgit-Baltistan.