Pakistan’s petroleum dealers briefly threw the government’s flagship fuel relief scheme into chaos this week, refusing to sell discounted petrol before abruptly reversing their stance after emergency negotiations resolved their concerns.
The dramatic standoff began Wednesday when the Pakistan Petroleum Dealers Association announced it would not participate in Prime Minister Shehbaz Sharif’s newly launched scheme offering Rs100-per-litre discounts on petrol for motorcyclists, rickshaw drivers, and owners of small vehicles up to 800cc.
Speaking at a press conference in Karachi, association vice chairman Anwar Kamal accused the government of imposing the scheme without consulting dealers and creating an unworkable financial burden. Dealers complained they had been trying to reach government officials for three days without response and questioned how they would be reimbursed for selling fuel at reduced prices.
“Putting the financial burden of the relief scheme on dealers is not workable,” Kamal said, noting that dealers were already struggling with inflation and billions of rupees in unpaid dues from oil marketing companies. The association demanded higher profit margins and a simpler mechanism that would provide relief directly to consumers.
The refusal threatened to derail a politically sensitive initiative that the government estimates will cost Rs25 billion to Rs30 billion monthly—potentially reaching Rs300 billion if sustained for ten months. Petroleum Minister Ali Pervaiz Malik had earlier revealed that PM Shehbaz ordered officials to mobilize additional resources to fund the programme.
But by Thursday, the crisis had evaporated. Following overnight negotiations, dealers announced they would implement the scheme after the government addressed their concerns. All Pakistan Petrol Pump Owners Association vice chairman Nauman Butt confirmed that authorities guaranteed subsidy reimbursements within 24 hours through the State Bank of Pakistan, where funds had already been deposited.
“Petrol pump owners had no objection to the subsidy scheme, but had concerns over the mechanism for receiving the subsidy payments,” Butt explained. “Following talks with the government, those concerns have now been resolved.”
The relief scheme, launched September 13 as fuel prices climbed amid Middle East tensions, targets Pakistan’s most vulnerable commuters. Motorcycle and rickshaw owners can receive the Rs100 discount on up to 20 litres monthly, while owners of vehicles up to 800cc qualify for relief on up to 30 litres.
To sweeten participation, PM Shehbaz made registration SMS messages completely free. Citizens must text their CNIC number, vehicle registration details, and province to 9771, then send “TOK” to the same number when purchasing fuel to receive the discount.
Deputy Prime Minister Ishaq Dar has directed authorities to ensure simple registration and smooth implementation nationwide, including in Azad Kashmir and Gilgit-Baltistan. The scheme rolled out in Islamabad first before expanding across Pakistan.
Information Minister Attaullah Tarar emphasized the programme’s transparency and urged that public transport fares should not increase despite the relief. Pakistan imports roughly 90 percent of its energy needs, leaving consumers exposed to international price swings that the government is now attempting to cushion with this costly subsidy.
