Petroleum Dealers Association Expresses Serious Reservations Over Government’s Fuel Relief Scheme

Petroleum Dealers Association Expresses Serious Reservations Over Government’s Fuel Relief Scheme

Petroleum Dealers Association Raises Serious Concerns Over Fuel Relief Scheme Mechanics, Summons Emergency Meeting

KARACHI: The Pakistan Petroleum Dealers Association (PPDA) has voiced serious concerns about the implementation mechanism of the newly introduced fuel relief scheme for motorcycles by the Prime Minister.

The association raised serious operating issues regarding the feasibility of retailers’ invoice checking, digital ID card verification and authentication of user IDs at retail fuel stations. The PPDA has convened an emergency meeting this evening to discuss with members what action they will take in the future on the scheme, in response to these challenges.

Fraud risks and operational challenges, as well as long queues.
The association’s leadership say that the current implementation framework is extremely vulnerable. The PPDA had issues over the risk of fraud with fake IDs and any losses would be borne by the petroleum dealers, it said.

A PPDA spokeswoman said an average petrol pump serves 35 to 50 motorcyclists at one time at peak hours, and it is virtually impossible to hand check invoices and IDs on each motorcyclist. The association warned that the mandatory checks would lead to “enormous queues at petrol stations and frustrated customers will simply leave” which would cost the dealers.

The practice of Alternative Distribution and Ministerial Engagement is in use in a few churches.In some churches, there is an Alternative Distribution and Ministerial Engagement.
The dealers’ body has urged for an urgent change in the procedural framework, stating that the government’s intentions in relief are welcome but that the dealers should not be caught in the middle of the administrative process. The association recommended the fuel subsidy should go directly to the state or oil marketing companies (OMCs) instead of retail fuel pumpstations.

The PPDA has called for the urgent holding of a meeting with petroleum dealers to break the procedural deadlock and put in place a consultative mechanism with the Minister for Petroleum.