By Staff Reporter
ISLAMABAD: Prime Minister Shehbaz Sharif ordered authorities to cancel the licences of petrol pumps that refuse to serve motorists enrolled in a fuel subsidy program that has now disbursed Rs28.6 billion.
Sharif, chairing a review of the Prime Minister’s Fuel Relief Programme in Islamabad on Thursday, told officials to ensure registered beneficiaries face no hurdles in buying subsidised fuel, according to a statement from his office. He also directed the relevant authorities to make sure petrol pumps comply with government instructions. He said he was satisfied with how the scheme was being run and with its transparency.
The order targets the retail end of a program that depends on private fuel stations to honor digital tokens at the pump. Officials told the meeting that 15,519,282 people have registered so far, including 15.06 million motorcycle owners and 449,000 owners of vehicles with engines of up to 800cc. A total of 63,153,685 tokens have been issued and 59,445,347 redeemed, or about 94%. Payments of Rs28.6 billion had been made as of Nov. 4, the briefing was told.
“Simplifying the registration and subsidy disbursement procedures has led to an increase in registrations, enabling more deserving citizens to benefit from the facility,” Sharif said, according to the statement. He called the technology-driven scheme a “game changer” for future public welfare initiatives. He credited Information Technology Minister Shaza Fatima and IT Secretary Zarar Hashim Khan and their team for building the monitoring and dashboard system. Officials also said separate call centers now handle queries and complaints from consumers and from petrol pumps.
Sharif announced the program in September to shield lower-income motorists from fuel prices pushed higher by the US-Iran war. The scheme was announced on Sept. 13 and provides a subsidy of Rs100 a liter. Owners of two- and three-wheelers can claim it on a monthly quota of 20 liters, delivered as weekly tokens worth Rs500. Owners of vehicles with engines of up to 800cc get the same discount on a monthly quota of 30 liters, or up to 10 liters every 10 days. Applicants register on a digital platform and, once their details are verified, receive a token carrying personal and vehicle information.
Petroleum Minister Ali Pervaiz Malik said in September that the program would cost Rs25 billion to Rs30 billion a month. The Rs28.6 billion disbursed so far covers roughly seven weeks since the announcement.
The rollout has not been smooth. The Pakistan Petroleum Dealers Association said in September that it would stay out of the scheme until the payment mechanism for dealers was clarified, and warned that stations could shut. The association also asked for subsidy money to go directly to consumers. The government has since adjusted course. It dropped a minimum five-liter purchase condition in September. In October it directed that every operational fuel station be brought onto the system, while permanently closed and diesel-only outlets are removed. Refusals by pumps to provide the relief can be reported on 9771, and other complaints on 9772.
It isn’t the first time Sharif has reached for pump licenses as leverage. In March he ordered a nationwide crackdown on fuel hoarding and told provincial governments to shut pumps and cancel licences of those creating artificial shortages. The Petrol Pump Owners Association rejected the allegations at the time, calling them unfounded.
The pressure on Pakistani motorists traces to the Middle East war. Fuel prices have surged since February, when the US and Israel attacked Iran. Tehran responded with strikes on US interests in the Gulf, and fired on ships in the Strait of Hormuz, a key trade route. Traffic through the waterway has been largely paralysed since the war broke out. Brent crude was trading at about $103 a barrel this week. Pakistan cut petrol by Rs7.06 a litre to Rs362.00 for Nov. 5, with the rate effective for one day. Islamabad ended an earlier fuel subsidy in June after international prices declined.
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