The Pakistan Petroleum Dealers Association (PPDA), on Wednesday, has refused to sell petrol under the government’s relief scheme. The relief scheme offers a reduction of Rs100 per litre for motorcyclists, rickshaw owners, and drivers of vehicles with engines up to 800cc.
Why are petrol dealers not selling petrol under the subsidy scheme?
Addressing a press conference in Karachi, PPDA Vice Chairman Anwar Kamal stated that petroleum dealers were not consulted during the formulation of the relief scheme. According to them, it made the implementation of the current procedure difficult.
Kamal noted that dealers have reservations regarding the scheme’s mechanism. They argued that relief should be provided to consumers through a direct and simple process.
He pointed out that dealers’ capital has already been reduced by inflation. Adding that billions of rupees remain outstanding against oil marketing companies.
Kamal also asserted that placing the financial burden of the relief scheme on petroleum dealers is not feasible. The association has also demanded an increase in dealers’ profit margins.
He questioned how the government intends to reimburse dealers for the cost difference involved in providing subsidised petrol.
According to Kamal, dealers have been in contact with the government for the past three days but have yet to receive a response.
The PPDA Vice Chairman made it clear that, in its current form, dealers would not sell petrol under the government’s relief scheme.
What is the government’s Rs100/liter relief scheme?
On September 13, the federal government launched a special relief scheme for motorcyclists, rickshaw owners, and drivers of vehicles with engine capacities of up to 800cc.
This initiative was launched to alleviate the burden on the public caused by the global rise in oil prices resulting from tensions in the Middle East.
While announcing the scheme, Prime Minister Shehbaz Sharif stated that the government is fully aware of the strain placed on the public by rising oil prices.
Under the scheme, owners and users of motorcycles, rickshaws, and other two- and three-wheeled vehicles will receive a subsidy of Rs100 per litre on a maximum monthly consumption of 20 litres of petrol.
Owners of small cars with engines up to 800cc will be provided a subsidy of Rs100 per litre on a maximum monthly consumption of 30 litres of petrol.
