Government, petroleum dealers reach agreement on fuel relief package

The government and Pakistan Petroleum Dealers Association (PPDA) struck a deal on Thursday to resolve a dispute over payment for the Rs100 per litre fuel subsidy under the Petrol Relief Package. The deadlock had put the package's implementation at risk. The agreement was reached during an emergency virtual meeting between the Ministry of Petroleum and the PPDA to address dealers' concerns about reimbursing the subsidy.

The PPDA claims that payments to petroleum dealers will be processed through the State Bank of Pakistan and transferred to their respective bank accounts within 48 hours. The government plans to issue a formal notification about the payment mechanism soon. The PPDA had initially refused to implement the package, citing the lack of a clear mechanism for reimbursing the subsidy.

After the agreement, the PPDA reported that dealers had begun implementing the relief package. The subsidy covers motorcycles, chingchi rickshaws, rickshaws, and cars with engine capacities of up to 800cc, registered after January 1, 2011, and is set to go nationwide from September 17. The PPDA had previously raised concerns that dealers were not consulted before the package's announcement and demanded a transparent payment mechanism.

The PPDA assured dealers that future consultations with all stakeholders would be improved. The association expressed optimism that the agreed payment mechanism would resolve dealers' concerns and enable smooth nationwide implementation of the relief package.