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 stations in Rawalpindi to ensure that subsidised petrol was available to registered consumers.
A day earlier, the Pakistan Petroleum Dealers Association (PPDA) expressed concerns 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.
However, to resolve the matter, Petroleum Minister Ali Pervaiz Malik, along with officials from the relevant ministries, held a meeting 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, which joined the meeting via video link.
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.
The Ministry of IT and Telecommunications briefed the participants on the digital system developed to implement the scheme.
The meeting was also 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.
The meeting 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.
The PPDA chairman said the Prime Minister’s Fuel Relief Scheme was welcomed by petroleum dealers, but a lack of information about 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 said.
During the meeting, 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.
In another development, the Oil Companies Advisory Committee (OCAC) warned the government of disruption to the oil supply chain if Rs67 billion in price differential claims (PDC) pending since March 2026 were not settled.
In a letter to the Oil and Gas Regulatory Authority (Ogra) chairman, the OCAC claimed that the pending PDC amount was equivalent to five imported cargoes of petrol.
The letter, written by OCAC Secretary General Dr Nazir Abbas Zaidi, was forwarded to the petroleum minister and the Petroleum Division secretary. It said oil companies were now unable to finance an uninterrupted fuel supply chain due to Rs66.7 billion in outstanding PDCs.
The OCAC said the situation had been further aggravated by the evolving geopolitical environment and potential disruptions to regional supply routes, including the East-West Pipeline.
The oil companies warned that the country could face significant supply-side challenges under the current regional scenario, while the oil industry’s liquidity continued to deplete due to a lack of support from the authorities.
“Any resulting supply-chain disruption must not be on account of the oil industry,” the OCAC said in the letter.
Despite repeated communications and extensive verification and audit processes, the OCAC had requested settlement by June 8, 2026, but the matter remained unresolved, it added.
“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.”
The OCAC said oil marketing companies (OMCs) had consistently supported the government, 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 said, inviting government functionaries to meet its members at its head office in Karachi.
The OCAC also reminded the government 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.
The letter added that dealer margins were increased by Rs1.34 per litre in August 2026, while the approved Rs1.22 per litre increase in OMC margins remained to be notified and implemented.
“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 said. It demanded immediate notification and implementation of the Rs1.22 per litre increase in OMC margins and the establishment of a predictable mechanism for periodic margin revisions.
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