Petroleum Dealers Reject Government Fuel Relief Scheme Over Payment Concerns
Pakistan’s petroleum dealers have refused to sell petrol under the government’s new fuel relief scheme in its current form, raising concerns about the implementation process and the financial burden on petrol stations.
The Pakistan Petroleum Dealers Association (PPDA) says dealers were not consulted before the scheme was prepared and has questioned how they will be reimbursed for the discounted fuel.
Dealers Raise Concerns Over Relief Mechanism
Speaking at a press conference in Karachi, PPDA Vice Chairman Anwar Kamal said the association has reservations about the mechanism introduced for providing subsidised petrol to eligible consumers.
He said the relief should reach consumers through a simple and transparent system rather than placing the financial responsibility on petroleum dealers.
According to the dealers’ association, inflation has already affected their working capital, while outstanding payments from oil marketing companies have also added to their financial pressures.
Kamal said that placing the cost of the relief programme on dealers was not workable and called for an increase in dealers’ profit margins.
Association Questions Government Reimbursement
The PPDA has also sought clarification about the process through which dealers will receive payment for the discounted petrol sold under the programme.
Kamal said the association had been contacting the government for several days but had not received a response regarding its concerns.
He reiterated that petroleum dealers would not participate in the relief programme under the current mechanism.
Government Fuel Relief Scheme
The federal government announced the fuel relief programme on September 13 as part of efforts to provide support to consumers facing higher petrol prices.
Under the scheme, eligible motorcycle, rickshaw and other two- and three-wheeler users can receive Rs100 per litre in relief on up to 20 litres of petrol per month.
Owners and users of vehicles with engine capacity of up to 800cc are eligible for the same Rs100-per-litre relief on up to 30 litres per month.
The government has said the scheme is intended to reduce the impact of higher fuel costs on people using motorcycles, rickshaws and smaller vehicles.
Nationwide Rollout Scheduled
The government has been preparing to expand the scheme across Pakistan after its initial operation in Islamabad.
Deputy Prime Minister and Foreign Minister Ishaq Dar chaired a meeting to review the administrative arrangements and directed officials to keep the registration process simple and accessible.
Authorities were also instructed to increase public awareness and ensure smooth implementation at petrol stations. Volunteers from the Prime Minister’s Youth Programme were also asked to assist citizens with awareness and registration.
The nationwide rollout was scheduled for 11:59pm on September 16, 2026.
Petrol Prices Remain Under Pressure
The dispute comes as domestic fuel prices have recently increased.
The government raised the price of petrol by Rs4.10 per litre, taking the retail price to Rs384.34 per litre from September 16. The price of high-speed diesel was also increased by Rs6.41 to Rs415.83 per litre.
With petroleum dealers raising concerns over the implementation mechanism, the government now faces the task of addressing the association’s reservations while ensuring that eligible consumers can access the announced fuel relief.
