Dealers’ body refuses to join fuel relief scheme without clarity on subsidy reimbursement

Profit by Pakistan Today reported that the PPDA is holding off on the Prime Minister's Fuel Relief Scheme, saying dealers need to know how they will be repaid for subsidised fuel first. The association cautioned that fuel stations may close if the programme is forced on them. Under the scheme, eligible motorcycles, rickshaws, two and three-wheelers, and cars up to 800cc receive a Rs100 per litre petrol subsidy.

The dealers praised the relief initiative but said officials have not named the institution that will repay them for the subsidy given to consumers. They want the money paid straight to eligible buyers and the earlier subsidy mechanism restored. The association also said it had tried to reach officials for three days without any reply, and complained that dealers were not consulted during formulation.

Working capital is already strained by inflation, the association argued, and the proposed mechanism could tie up billions of rupees in dealer accounts. It also pointed to billions owed by oil marketing companies and warned that around 14,000 dealers nationwide could face a financial crisis. The association also wants its margin raised to 8%, monthly price fixing, and it opposes a smart lockdown over the fuel crisis. Separately, the association flagged higher costs and longer transit times, noting Saudi oil now needs more than 23 days via the Red Sea.