KARACHI – The government’s petrol relief scheme hits another roadblock, as the Pakistan Petroleum Dealers Association (PPDA) refused to provide petrol under the existing mechanism, citing serious concerns over implementation, payments and the financial burden on dealers.
Speaking at a press conference in Karachi, PPDA Vice Chairman Anwar Kamal said dealers were not consulted during the preparation of the relief scheme and warned that the current mechanism would be difficult to implement. “We have reservations over the procedure,” Kamal said, arguing that relief should instead be delivered to the public through a direct and simpler mechanism.
The dealers’ association said its members were already facing financial pressure amid inflation, while billions of rupees in outstanding payments from oil marketing companies were also pending.
Kamal maintained that shifting the financial burden of the government’s relief package onto petrol dealers was not workable. He said dealers were demanding an increase in their margins and made it clear that they would not sell petrol under the government’s current relief mechanism.
A key question raised by the association is how dealers would receive reimbursement for the discounted petrol they are expected to provide. “How will the government pay dealers the money for the cheaper petrol?” Kamal questioned.
According to the PPDA vice chairman, the association has been attempting to contact the government for the past three days, but has yet to receive a response.
The standoff puts the implementation of the petrol relief scheme under pressure as dealers and the government remain at odds over who will bear the cost and how the discounted fuel will be reimbursed.
