KARACHI(The COW News Digital)The Petroleum Pump Owners Association has refused to implement the Prime Minister’s relief scheme, citing serious concerns over the mechanism for reimbursing dealers for the subsidy.
Association leader Nauman Ali Butt said the government’s decision to provide relief to consumers was welcome in principle, but the payment procedure for petroleum dealers remained unclear. He said dealers could not be expected to implement the scheme without a clear and guaranteed mechanism for receiving the subsidy amount.
In a statement issued from Karachi, Butt alleged that petroleum dealers were not consulted before the government launched the relief initiative. He said neither the relevant ministry, the Prime Minister’s Office nor the Oil and Gas Regulatory Authority (OGRA) had taken the dealers into confidence before introducing the scheme.
According to the association, the absence of clarity over subsidy payments is the primary concern for petrol pump operators. Butt questioned how dealers could implement the relief package when they had not been informed about when, how and through which mechanism the subsidy would be reimbursed.
He said the dealers were being asked to provide the relief at their outlets without receiving adequate information about the financial settlement process.
Butt maintained that the association could consider implementing the scheme if the government provided a complete guarantee for timely payment of the subsidy. However, he said dealers would face difficulties in operating the scheme if there was no assurance that the amounts would be reimbursed.
The association also raised concerns about outstanding payments and the financial obligations already faced by petroleum dealers. It said ensuring the timely settlement of dealers’ dues should be a fundamental responsibility of the government.
Petrol pump owners said announcing a subsidy was one aspect of the relief initiative, but establishing a transparent and reliable payment system was equally important. They argued that dealers should have been concerns among petroleum dealers over the financial risks associated with implementing government-led fuel relief measures. The association’s position is that a clear consulted and provided with clear operational and financial guidelines before the scheme was introduced at fuel stations.
The dispute highlights concerns among petroleum dealers over the financial risks associated with implementing government-led fuel relief measures. The association’s position is that a clear reimbursement mechanism and payment guarantee are necessary before dealers can fully participate in the initiative.
As of the statement issued on September 16, the association maintained its refusal to implement the scheme until its concerns over subsidy payments and consultation with dealers are addressed.
