Petrol pump strike threat: dealers warn of shutdown over Rs 100 fuel relief scheme

Petrol costs Rs 391.22 a litre today, up Rs 80.51 since 11 July. Diesel is Rs 421.45, up Rs 98.15. Now the Pakistan Petroleum Dealers Association (PPDA) is threatening to close pumps nationwide if it is forced to run the government's Rs 100-a-litre relief scheme on its current terms. No strike date has been announced, and pumps are open.

Who is threatening what

The PPDA is led by chairman Malik Khuda Bakhsh and vice chairman Anwar Kamal. "If the scheme is imposed on us, we will shut down fuel stations," Kamal said, according to The Express Tribune on 17 September.

The dealers' main question is who pays for the discount. "Putting the financial burden of the relief scheme on dealers is not workable," Kamal told Geo News on 16 September. He also asked how the government would pay dealers back for the cheaper petrol. Aaj News quoted Khuda Bakhsh as saying that if the government wants to give the public relief, "it should do so with its own money".

The Tribune reports that the association wants:

• a clear process for reimbursing dealers, naming the institution that pays
• the subsidy paid directly to consumers instead of at the pump
• the previous subsidy mechanism brought back
• monthly price-setting in place of daily revisions
• the dealers' margin raised to 8%
• consultation before the scheme is imposed

The scheme dealers object to

The PM's fuel relief scheme was announced on 13 September. It began as a pilot in Islamabad on 15 September and went nationwide from midnight on 17 September, including Azad Kashmir and Gilgit-Baltistan. The ECC has approved Rs 75 billion for it.

• Motorcycles and rickshaws: Rs 100 off a litre on up to 20 litres a month, a saving of up to Rs 2,000.
• Cars up to 800cc: Rs 100 off on up to 30 litres a month, a saving of up to Rs 3,000.
• How to register: send your CNIC number, vehicle number, province and registration date by SMS to 9771. Before buying fuel, text TOK to 9771 to get a token.

At today's price, the discounted rate works out to Rs 291.22 a litre. The Prime Minister has ordered facilitation desks at pumps, staffed by district officials and pump workers. IT Minister Shaza Fatima Khawaja has ordered strict monitoring of stations that delay or refuse subsidised petrol, PhoneWorld reported.

How much more you pay since July

On 11 July the government set petrol at Rs 310.71 and diesel at Rs 323.30. It has since moved to daily pricing. The rises in rupees:

That is a 25.9% rise for petrol and 30.4% for diesel. Put your own monthly distance into our fuel cost calculator, and track daily rates on the petrol price page.

What motorists should do

• Fill up normally. The PPDA has not given a shutdown date, so there is no need for panic buying.
• Register now if you qualify. Our Rs 100 relief explainer covers eligibility step by step.
• Get your token before you reach the pump and carry your CNIC. If a pump refuses, try one with a facilitation desk.
• Watch for talks. The threat depends on the government answering the dealers' reimbursement question. We will update this story if a strike date is set.

For today's full price breakdown, see petrol price in Pakistan today.