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ISLAMABAD: Pakistan has reimbursed more than 8,500 petrol stations out of roughly 10,000 enrolled in a government fuel subsidy program, the petroleum ministry said Thursday, as authorities worked to ensure the benefits reach eligible motorists amid sharply higher fuel prices.
The government introduced the targeted program this month after a surge in global oil prices drove up domestic petrol and diesel costs. It provides subsidized fuel to motorcycle and rickshaw users, as well as owners of cars with engines of up to 800cc.
Officials said payments to participating petrol stations were being processed daily.
“All obstacles, including minor issues with account numbers, should be resolved immediately and payments to the remaining petrol stations completed,” Petroleum Minister Ali Pervaiz Malik said, according to the ministry.
He ordered the Oil and Gas Regulatory Authority (OGRA) to enforce the scheme and said action would be taken against petrol stations that denied eligible consumers access to subsidized fuel.
Representatives of petrol pump owners also voiced their support for the program.
“The scheme is working successfully and we will continue to cooperate with the government,” said Malik Khuda Baksh, chairman of the Pakistan Petroleum Dealers Association, according to the ministry.
The Prime Minister’s Fuel Relief Scheme was approved by the government’s Economic Coordination Committee on Sept. 14 to protect lower-income households from rising transport costs linked to disruptions in global energy markets.
More than 2.2 million people had registered by Sunday, Information Minister Attaullah Tarar said. Motorcycle, rickshaw and Qingqi users accounted for 92 percent of registrations, while approximately 1.9 million fuel tokens had been issued.
The government has allocated funding to cover the program’s first three months. For the opening month, Rs25 billion ($90 million) has been provided to the State Bank of Pakistan for station reimbursements. Dealers had previously been informed that claims submitted under the scheme would be processed within 48 hours.
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