Petroleum dealers demand govt devise mechanism for fuel subsidy reimbursement

Petroleum dealers demand govt devise mechanism for fuel subsidy reimbursement.

Key points

• Kalbe Ali Published September 16, 2026 Updated September 16, 2026 11: 57pm.
• "We welcome the government's move for the benefit of the public, but our businesses should not suffer, " Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Bakhsh remarked.
• Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and throughout the world.
• Kalbe Ali is a senior staff reporter for Dawn based in Islamabad, with almost 20 years of field reporting experience.
• Minister Shaza Fatima confirmed on Wednesday night that the problem related to the forwarding of SMS messages from preloaded packages and low balances had been resolved.

Kalbe Ali Published September 16, 2026 Updated September 16, 2026 11: 57pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

KARACHI: Petroleum dealers have called on the administration to devise a mechanism for reimbursing the fuel subsidy. It is due to take effect nationwide from midnight on Wednesday.

On September 13, Prime Minister Shehbaz Sharif confirmed a "relief scheme" for users of motorcycles, autos and vehicles of up to 800cc to "alleviate the burden" of rising global oil costs.

While those owning small vehicles of up to 800cc will obtain a relief of Rs100 per litre for a monthly quota of 30 litres, under the scheme, a relief of Rs100 per litre on a monthly quota of 20 litres will be provided to bike and auto owners.

He was addressing an emergency press conference on Wednesday along with other office-bearers of the association.

"The fuel subsidy scheme started in Islamabad at midnight on Tuesday and will be launched across the country from tonight, " Malik remarked.

He continued: "But our issue is that petroleum dealers are asking us: who will pay the subsidy amount and when?"

He explained that no fuel station could afford to bear a loss of Rs100 per litre or wait for delayed payments for a long period.

"We have approached the Petroleum Division, the Oil and Gas Regulatory Authority (Ogra) and even the Finance Ministry to get an answer to one simple question, " Khuda Bakhsh remarked.

He continued that the confusion was compounded by the fact that it appeared none of the authorities themselves were aware of the problem.

"The authorities of Ogra and oil marketing businesses say that the Petroleum Division will possibly pay the subsidy amount, whereas Petroleum Division authorities maintain that the payments will be produced by the Finance Ministry. A Finance Ministry official has assured us that the State Bank will release the funds within a day or two, " he continued.

He additionally maintained that the federal administration had assured the dealers that they would be taken into confidence before the launch of the fuel relief package.

"The government has to understand that if payments are not reimbursed on time, many dealers will stop participating in the scheme, as many previous promises made by the government were not fulfilled, " he continued.

According to PPDA Vice Chairman Tariq Hassan, around 14, 000 dealers nationwide had been trying to contact the administration for the past three days, but whenever the administration wanted to enforce something, it ceased communication.

Another vice chairman, Anwar Kamal, remarked that if the scheme was to be successful, the administration must negotiate with dealers. He additionally rejected the government's proposed "smart lockdown".

He continued that billions of rupees belonging to dealers should not remain tied up for a long period under the scheme.

Meanwhile, Minister Shaza Fatima confirmed on Wednesday night that the problem related to the forwarding of SMS messages from preloaded packages and low balances had been resolved.

"The prime minister has created the SMS for the fuel subsidy available free of charge, and Jazz has completed the system shift. Other telecom firms will additionally do so by Thursday, " she continued.

Kalbe Ali is a senior staff reporter for Dawn based in Islamabad, with almost 20 years of field reporting experience. As well as religious affairs, he covers a diverse range of topics, including the internet, IT and telecom sectors.

In short, petroleum dealers demand govt devise mechanism for fuel subsidy reimbursement is the central thread here, and readers can expect follow-up reporting as the picture becomes clearer.