KARACHI: Petroleum dealers have called on the government to devise a mechanism for reimbursing the fuel subsidy, which is set to take effect across the country from midnight on Wednesday.

On September 13, Prime Minister Shehbaz Sharif announced a “relief scheme” for users of motorcycles, autos and vehicles of up to 800cc to “alleviate the burden” of rising global oil prices.

Under the scheme, a relief of Rs100 per litre on a monthly quota of 20 litres will be provided to bike and auto owners, while those owning small vehicles of up to 800cc will get a relief of Rs100 per litre for a monthly quota of 30 litres.

“We welcome the government’s move for the benefit of the public, but our businesses should not suffer,” Pakistan Petroleum Dealers Association (PPDA) Chairman Malik Khuda Bakhsh said.

He was addressing an emergency press conference on Wednesday along with other office-bearers of the association.

“The fuel subsidy scheme started in Islamabad at midnight on Tuesday and will be launched across the country from tonight,” Malik said.

He added: “But our issue is that petroleum dealers are asking us: who will pay the subsidy amount and when?”

He explained that no fuel station could afford to bear a loss of Rs100 per litre or wait for delayed payments for a long period.

“We have approached the Petroleum Division, the Oil and Gas Regulatory Authority (Ogra) and even the Finance Ministry to get an answer to one simple question,” Khuda Bakhsh said.

He added that the confusion was compounded by the fact that it appeared none of the authorities themselves were aware of the issue.

“The officials of Ogra and oil marketing companies say that the Petroleum Division will possibly pay the subsidy amount, whereas Petroleum Division officials maintain that the payments will be made by the Finance Ministry. A Finance Ministry official has assured us that the State Bank will release the funds within a day or two,” he added.

He also maintained that the federal government had assured the dealers that they would be taken into confidence before the launch of the fuel relief package.

“The government has to understand that if payments are not reimbursed on time, many dealers will stop participating in the scheme, as many previous promises made by the government were not fulfilled,” he added.

PPDA Vice Chairman Tariq Hassan said that around 14,000 dealers across the country had been trying to contact the government for the past three days, but whenever the government wanted to enforce something, it stopped communication.

Another vice chairman, Anwar Kamal, said that if the scheme was to be successful, the government must negotiate with dealers. He also rejected the government’s proposed “smart lockdown”.

He added that billions of rupees belonging to dealers should not remain tied up for a long period under the scheme.

Meanwhile, Minister Shaza Fatima announced on Wednesday night that the issue related to the forwarding of SMS messages from preloaded packages and low balances had been resolved.

“The prime minister has made the SMS for the fuel subsidy available free of charge, and Jazz has completed the system shift. Other telecom companies will also do so by Thursday,” she added.