We will not be part of fuel scheme, will close petrol pumps if forced, PPDA

Association Chairman Malik Khuda Bakhsh, along with officials and dealers, held a conference in Karachi and expressed reservations over the federal government's fuel subsidy program.

Vice Chairman Anwar Kamal said that until the method of payment of the subsidized amount is clarified, dealers will not be part of this scheme, if forced then fuel stations will be closed. Government has formulated the fuel relief scheme without consultation with dealers, we welcome the relief scheme however have reservations on it, relief should be given to the public directly and in an easy way.

Chairman Malik Khuda Bakhsh said that the fuel relief initiative is commendable but we have objection to the procedure of this scheme, who will pay the subsidized amount, till now the government has not clarified anything about this, dealers should be told who will pay subsidy to dealers.

He demanded that the amount of fuel relief be paid directly to consumers, the previous mechanism be used for fuel subsidy, we are in favor of fuel relief scheme but have objection to the procedure, implementation should be stopped till objections are removed.

Malik Khuda Bakhsh demanded that prices of petroleum products be fixed once a month, government should consult Petroleum Dealers Association about relief scheme, margin of petroleum dealers should be made 8 percent. He complained that we have been contacting the government for three days but have received no response.

He said that there is additional cost faced in bringing petroleum products to Pakistan from Red Sea, the period of bringing Saudi oil through this route has exceeded 23 days while through Strait of Hormuz route petrol was reaching Pakistan from Gulf countries in a week.

Regarding smart lockdown, Malik Khuda Bakhsh said we cannot afford smart lockdown, business activities will be badly affected by it, it could be implemented during Corona pandemic but smart lockdown is not the solution to petroleum products price crisis.

According to PPDA, due to inflation dealers' capital is already under pressure, there is fear of billions of rupees getting stuck due to relief scheme, who will compensate? Billions of dues of oil marketing companies are already pending and with the current procedure, 14,000 dealers across the country will face financial crisis.