Fuel relief scheme: Govt calls emergency meeting after PPDA refuses to implement package

KARACHI: The Ministry of Petroleum has called an emergency meeting on Thursday (today) with petroleum dealers to explain the mechanism for subsidy reimbursement under the government’s Petrol Relief Package and address their implementation concerns.

Ministry of Petroleum called this virtual meeting after the Pakistan Petroleum Dealers Association (PPDA) raised concerns and refused to implement the government’s Petrol Relief Package without a clear payment mechanism, demanding immediate consultations to finalise a transparent disbursement process.

“Yes, the Secretary of the Ministry of Petroleum contacted the PPDA, and an online meeting will be held on Thursday to brief the dealers on the subsidy reimbursement mechanism and address their other concerns,” PPDA Chairman Malik Khuda Baksh told Business Recorder.

He said some association’s representatives will attend the meeting in Islamabad, while the remaining members will participate virtually from Karachi.

Earlier in the day, addressing an emergency press conference, Malik Khuda Baksh Chairman PPDA along with Tariq Hassan Vice Chairman PPDA, Anwar Kamal Vice President clearly said fuel stations will not sale the petrol under the government’s announced relief package until an acceptable subsidy payment mechanism not announced with the consultation of PPDA. On the occasion, Ameer Khan President Sind Zone PPDA and Saeed Khan President Karachi PPDA and other members were also present.

Also read: PM Shehbaz announces Rs100 per litre fuel relief for bikes, rickshaws, small cars

The federal government has announced Rs100 per litre subsidy for bikers, Chingchi, Rikshaw, and owners of cars up to 800cc, registered after January 1, 2011, under the relief scheme. However, the PPDA has claimed that the government has neither taken the association on board nor announced a clear mechanism for disbursing the subsidy. The scheme is scheduled to be launched nationwide from September 17, 2026.

“If the government forcibly implements the scheme, we will not be able to operate our petrol pumps,” Khuda Baksh warned. He said that if the government wants to provide relief to the people, it should do so from its own funds instead of tying up dealers’ money.

“We have made several attempts to contact officials of the Ministry of Petroleum, particularly the Petroleum Minister Ali Pervaiz Malik, but they have not responded since the scheme was announced,” he said.

Rejecting the federal government’s petrol relief package, Khuda Baksh said that dealers were not taken into confidence before announcing the package. He questioned how their (petroleum dealers) payments would be reimbursed, adding that previous promises are still not fulfilled by the federal government.

Tariq Hassan, Vice Chairman of the PPDA, said there are around 14,000 petroleum dealers across the country and that they would not sell petrol under the relief package from tonight. However, he said the government could implement the scheme through company-owned petrol pumps.

Copyright Business Recorder, 2026