The federal government and petroleum dealers have resolved a dispute over payments under the prime minister’s petrol relief scheme.
The agreement removes a major hurdle that had threatened the nationwide implementation of the relief package. Both sides reached the understanding after talks in Islamabad on Thursday.
The Pakistan Petroleum Dealers Association (PPDA) later confirmed that dealers had started implementing the relief package.
Govt Agrees to Faster Payments for Petrol Dealers
Under the agreement, the government will transfer payments to dealers through the State Bank of Pakistan.
The funds will reach dealers’ bank accounts within 48 hours under the agreed payment mechanism. Meanwhile, authorities have already established a payment portal for the reimbursement process.
The PPDA said a formal notification explaining the payment procedure would also be issued shortly.
Petroleum Minister Ali Pervaiz Malik assured dealers that stakeholder consultation would receive greater attention in future.
PPDA Information Secretary Aziz Khan said the government had reaffirmed its commitment to releasing funds within 48 hours.
He added that payments would follow a pre-agreed formula between the government and petroleum dealers.
Dealers Confirm Relief Scheme Implementation
The meeting included several senior PPDA representatives, including Malik Khuda Bakhsh, Tariq Hassan, Anwar Kamal and Malik Sher Khan.
PPDA Sindh President Ameer Khan participated in the meeting through Zoom. Meanwhile, PPDA Punjab Vice Chairman Raja Wasim also attended the discussions.
All Pakistan Petrol Pump Owners Association Vice Chairman Nauman Ali Butt separately confirmed that the talks had successfully ended the dispute.
He said the government had committed to returning subsidy funds within 24 hours through the State Bank.
According to Butt, dealers did not oppose the fuel subsidy scheme itself. Instead, their concern focused on how the government would reimburse them for the discounted fuel.
The latest agreement addresses that payment-related concern and clears the way for dealers to implement the scheme.
Why Did the Petrol Relief Scheme Face a Standoff?
Prime Minister Shehbaz Sharif announced the petrol relief package on September 13. The scheme aims to reduce the impact of rising petroleum prices on eligible vehicle owners.
Under the package, motorcycle, rickshaw, chingchi and small vehicle owners can receive a discount of Rs100 per litre on petrol.
The relief covers a monthly quota of 20 litres for motorcycle and auto owners. Owners of vehicles up to 800cc can receive the discount on 30 litres of petrol each month.
However, petroleum dealers initially raised concerns about the reimbursement mechanism. They also warned of a strike if the government failed to address their demands.
Dealers Refused Relief Scheme Sales on Wednesday
The dispute escalated on Wednesday when petroleum dealers refused to sell fuel under the relief scheme.
Dealers cited concerns about the implementation mechanism and the financial burden associated with the scheme.
PPDA Vice Chairman Anwar Kamal said dealers had not been consulted while the government prepared the relief package.
Meanwhile, PPDA Vice Chairman Tariq Hassan said around 14,000 dealers nationwide had sought clarity from the government.
He said dealers had spent three days trying to contact authorities over the payment mechanism.
Following Thursday’s talks, however, the government and petroleum dealers reached an agreement on the reimbursement process.
With the payment mechanism now settled, dealers have started implementing the petrol relief package across the country.
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