Pakistan’s fuel dealers demand a mechanism for subsidy reimbursement
In Pakistan, an association of fuel dealers called on the government to determine a mechanism for reimbursing fuel subsidies that were due to take effect nationwide at midnight on Wednesday. Industry representatives said petrol stations could not cover the 100-rupee-per-litre discount on their own and needed clear deadlines for reimbursement.
Malik Khuda Bakhsh, chairman of the Pakistan Petroleum Dealers Association, said this at a press conference in Karachi, Dawn reports. According to him, the programme had already begun operating in Islamabad at midnight on Tuesday, while the nationwide launch was scheduled for Wednesday night.
Programme terms
On September 13, Pakistani Prime Minister Shehbaz Sharif announced a support programme for owners of motorcycles, auto-rickshaws and cars with engines of up to 800 cubic centimetres. It was presented as a way to reduce the impact of rising global oil prices.
Owners of motorcycles and auto-rickshaws will be able to receive a discount of 100 rupees per litre within a monthly quota of 20 litres. Owners of small-engine cars are eligible for the same discount on 30 litres of fuel per month.
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Uncertainty over payments
Malik Khuda Bakhsh said dealers had approached the Petroleum Division, the Oil and Gas Regulatory Authority of Pakistan (Ogra), and the Finance Ministry to ask who would reimburse the subsidy amount and when. According to him, representatives of Ogra and oil marketing companies pointed to the Petroleum Division, while it said payments would be made by the Finance Ministry.
A Finance Ministry official, according to the association chairman, assured them that the State Bank would transfer the funds within one or two days. At the same time, dealers fear that if reimbursements are delayed, some petrol stations may refuse to participate in the programme.
Association vice chairman Tariq Hasan said that about 14,000 dealers across the country had been trying to contact the government for three days. Another vice chairman, Anwar Kamal, stressed the need for talks with dealers for the programme to be implemented successfully.
Minister Shaza Fatima also announced on the evening of September 16 that the issue with sending SMS messages under the programme from prepaid packages and with low balances had been resolved. According to her, SMS messages for receiving the fuel subsidy were made free, and the Jazz operator had completed the necessary system update; other operators were expected to do so by Thursday.
