PM’s fuel subsidy scheme faces first-day hurdles at petrol pumps

PM's fuel subsidy scheme faces first-day hurdles at petrol pumps.

Key points

• Kalbe Ali Published September 17, 2026 Updated September 17, 2026 11: 43pm.
• The letter, written by OCAC Secretary General Dr Nazir Abbas Zaidi, was forwarded to the petroleum minister and the Petroleum Division secretary.
• Despite repeated communications and extensive verification and audit processes, the OCAC had requested settlement by June 8, 2026, but the matter remained unresolved, it continued.
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• Kalbe Ali is a senior staff reporter for Dawn based in Islamabad, with almost 20 years of field reporting experience.

Kalbe Ali Published September 17, 2026 Updated September 17, 2026 11: 43pm. Join our Whatsapp Channel. Add Dawn as a trusted source.

As numerous petrol pumps declined to honour the digital app, claiming they lacked the system needed to provide petrol at Rs100 per litre less, ISLAMABAD: The much-touted fuel subsidy scheme introduced by the prime minister faced snags on Thursday, the first day of its nationwide rollout.

After receiving a number of complaints in this regard, Information Technology Minister Shaza Fatima visited various fuel stations in Rawalpindi to ensure that subsidised petrol was available to registered consumers.

Notably, a day earlier, the Pakistan Petroleum Dealers Association (PPDA) expressed reservations that its members were unaware of the subsidy disbursement mechanism and feared they would have to run from pillar to post to recover the amount.

Nevertheless, to resolve the matter, Petroleum Minister Ali Pervaiz Malik, along with office-holders from the relevant ministries, held a session with the PPDA on Thursday to discuss the mechanism for implementing the Prime Minister's Fuel Relief Scheme.

PPDA Chairman Malik Khuda Baksh led the delegation. It joined the session via video link.

In practice, the State Bank of Pakistan (SBP) briefed the participants on the reimbursement mechanism and assured them that claims submitted under the scheme would be processed within 48 hours, ensuring timely payments to participating petroleum dealers.

Meanwhile, the Ministry of IT and Telecommunications briefed the participants on the digital system developed to implement the scheme.

In practice, the session was additionally informed that a dedicated control room had been established to assist petrol pumps and address their queries and complaints. Petrol pumps can contact the control room at 9772 for assistance.

Meanwhile, the session was further informed that funds for three months had been earmarked for the Prime Minister's Fuel Relief Scheme, with Rs25 billion for the first month already provided to SBP to facilitate timely reimbursement under the scheme.

Notably, the PPDA chairman remarked the Prime Minister's Fuel Relief Scheme was welcomed by petroleum dealers, but a lack of information concerning the disbursement of subsidy amounts was creating confusion among its members.

"We assure you that all our members across the country will support the PM's fuel relief scheme, " Khuda Baksh remarked.

During the session, the petroleum minister appreciated the cooperation extended by petroleum dealers and emphasised the importance of close coordination among all stakeholders for the effective, transparent and timely implementation of the relief initiative. OCAC warns of disruption.

In another development, the Oil Firms Advisory Committee (OCAC) cautioned the administration of disruption to the oil supply chain if Rs67 billion in rate differential claims (PDC) pending since March 2026 were not settled.

In a letter to the Oil and Gas Regulatory Authority (Ogra) chairman, the OCAC asserted that the pending PDC amount was equivalent to five imported cargoes of petrol.

In practice, the letter, written by OCAC Secretary General Dr Nazir Abbas Zaidi, was forwarded to the petroleum minister and the Petroleum Division secretary. It remarked oil businesses were now unable to finance an uninterrupted fuel supply chain due to Rs66.7 billion in outstanding PDCs.

Meanwhile, the OCAC remarked the situation had been further aggravated by the evolving geopolitical environment and potential disruptions to regional supply routes, including the East-West Pipeline.

While the oil industry's liquidity continued to deplete due to a lack of backing from the authorities, the oil firms cautioned that the country could face significant supply-side challenges under the current regional scenario.

"Any resulting supply-chain disruption must not be on account of the oil industry, " the OCAC remarked in the letter.

"We urge Ogra to urgently conclude the verification process and release all verified and approved claims, including the approved premium differential claims relating to Motor Spirit (petrol) imports during the recent geopolitical crisis, referring to the situation arising following the US-Israeli attack on Iran at the end of February 2026."

Meanwhile, the OCAC remarked oil marketing businesses (OMCs) had consistently backed the administration, particularly when fuel security and uninterrupted supplies were at stake.

"Yet today, the same industry is facing an acute and worsening liquidity crisis and effectively being required to finance the supply chain while its own liquidity is being progressively drained, " the OCAC remarked, inviting administration functionaries to meet its members at its head office in Karachi.

Notably, the OCAC additionally reminded the administration of the need to revise OMC margins, adding that they were last revised in September 2023 and had remained unchanged despite significant increases in operating, financing, technology, regulatory and compliance costs.

While the approved Rs1.22 per litre growth in OMC margins remained to be notified and implemented, the letter continued that dealer margins were climbed by Rs1.34 per litre in August 2026.

"Unlike dealers, OMCs carry the full responsibility for product procurement, import financing, inventory management, logistics and ensuring product availability across the country, in addition to meeting ever-expanding regulatory and digitisation requirements, with implementation timelines being progressively compressed, " the letter remarked. It demanded immediate notification and implementation of the Rs1.22 per litre growth in OMC margins and the establishment of a predictable mechanism for periodic margin revisions.

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.

For now, pM's fuel subsidy scheme faces first remains the part of the story worth watching, and further updates are likely as more details are confirmed.