PM’s fuel subsidy scheme faces first-day hurdles at petrol pumps
ISLAMABAD: The much-touted fuel subsidy scheme launched by the prime minister faced snags on Thursday, the first day of its nationwide rollout, as many petrol pumps declined to honour the digital app, claiming they lacked the system needed to provide petrol at Rs100 per litre less. After receiving several complaints in this regard, Information Technology Minister Shaza Fatima visited various fuel…
The Prime Minister's Fuel Relief Scheme, unveiled by the nation's leader, encountered technical issues on its inaugural day of nationwide deployment on Thursday. Many petrol stations resisted the digital app's offer of Rs100 in fuel savings, citing a lack of required systems to supply petrol at the subsidized price. In response, Information Technology Minister Shaza Fatima personally inspected various fuel outlets in Rawalpindi to guarantee that subsidized petrol reached registered purchasers.
Earlier, the Pakistan Petroleum Dealers Association (PPDA) voiced concerns over dealers' unfamiliarity with the subsidy distribution process, fearing financial strain in recovering the amounts. To address this, Petroleum Minister Ali Pervaiz Malik, along with officials from related ministries, convened with PPDA officials in a video conference to discuss the implementation mechanism.
The State Bank of Pakistan (SBP) educated participants on the reimbursement process, promising claims processing within 48 hours. The IT ministry briefed attendees on the digital system designed for the scheme. A dedicated control room was announced to aid petrol pumps and tackle their queries. Funds for three months were earmarked, with Rs25 billion granted to the SBP for timely reimbursements.
The PPDA chairman expressed gratitude for the petroleum dealers' support for the scheme, despite confusion over subsidy disbursement. Meanwhile, the Oil Companies Advisory Committee (OCAC) cautioned the government about potential oil supply chain disruptions if Rs67 billion in pending price differential claims (PDC) from March 2026 were not settled.
The OCAC claimed the outstanding PDC amount equated to five imported cargoes of petrol, threatening the uninterrupted fuel supply chain. OCAC Secretary General Dr Nazir Abbas Zaidi urged the Oil and Gas Regulatory Authority (Ogra) to promptly settle the claims by June 8, 2026, to avoid supply-side challenges. Despite acknowledging the industry's support during fuel security crises, the OCAC highlighted the oil sector's growing liquidity crisis and demanded an increase in OMC margins, last revised in September 2023.
Written by urgent.news from Dawn's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
