PM Shehbaz orders cancellation of petrol pump licences over subsidy denial

Prime Minister Shehbaz Sharif on Thursday ordered the cancellation of licences of petrol pumps refusing to provide subsidised fuel to registered beneficiaries under the Prime Minister’s Fuel Relief Programme, warning of strict action against outlets denying the facility to eligible citizens.

The directive was issued during a high-level meeting chaired by the premier at the Prime Minister’s Office (PMO) in Islamabad to review progress on the subsidy programme and assess its implementation across the country.

Shehbaz directed the relevant authorities to ensure that registered beneficiaries faced no hurdles in obtaining subsidised fuel and that petrol pumps complied with the government’s instructions.

Expressing satisfaction over the programme’s progress and transparency, he said, “As a result of simplifying the process of registration and obtaining subsidies, there has been an increase in registrations, and more deserving citizens are benefiting from this facility.”

He described the technology-driven and transparent subsidy mechanism as a potential “game-changer for such public welfare initiatives in the future”.

The prime minister also commended IT Minister Shaza Fatima, Federal Secretary Zarar Hashim Khan and their teams for establishing an effective monitoring mechanism and dashboard to oversee the programme.

According to the briefing, 15,519,282 citizens had registered under the subsidy scheme so far. Of these, 15.06 million were motorcycle owners, while 449,800 owned vehicles with engine capacities of up to 800cc.

The meeting was informed that 63,153,685 fuel subsidy tokens had been issued, of which 59,445,347 had been redeemed, representing a redemption rate of just over 94%.

Also Read: 31,000 consumers denied petrol subsidy

Payments amounting to Rs28.6 billion had been made under the programme as of November 4, accounting for 38% of the total amount allocated by the government. On September 14, the Economic Coordination Committee of the Cabinet had set aside Rs75 billion for the Prime Minister’s Fuel Relief Scheme.

To facilitate beneficiaries and address complaints, the meeting was informed that separate call centres had been established for consumers and petrol pumps, allowing both sides to obtain information and report issues related to the scheme.

Shehbaz stressed that the monitoring mechanism must remain effective and that the subsidy should reach its intended beneficiaries without discrimination or administrative obstacles.

Former deliberations and decisions

The latest directive comes amid earlier reports of implementation challenges and complaints concerning the distribution of subsidised fuel at petrol stations.

In a report published on October 25, The Express Tribune reported that around 31,000 consumers had been denied subsidies, prompting the government to order an audit of fuel stations and rectification of registration errors.

The report highlighted complaints relating to refusal of service, technical faults, expired tokens and registration discrepancies. Authorities also discussed station-wise monitoring through the IT ministry’s dashboard and proposed audits of petrol pumps recording unusually low redemption figures.

On September 16, PM Shehbaz had directed the establishment of facilitation desks at petrol stations to help citizens complete registration and obtain subsidies. The desks were to include administrative officials, volunteers and petrol pump staff.

Read More: Govt says to expect more ‘good news’ on petroleum prices

The initiative followed the nationwide rollout of the Prime Minister’s Fuel Relief Scheme, which targeted motorcycle, rickshaw and small-car owners.

The Economic Coordination Committee (ECC), chaired by Finance Minister Muhammad Aurangzeb, had approved the Prime Minister’s Fuel Relief Scheme on September 14. Under the approved mechanism, two- and three-wheelers were to receive Rs500 weekly, equivalent to five litres at a subsidy of Rs100 per litre, while owners of cars with engine capacities of up to 800cc were to receive Rs1,000 every 10 days.

The Ministry of IT and Telecommunication was tasked with deploying and managing the digital Fuel Pass System to ensure transparent delivery of subsidies.

The programme followed a series of federal and provincial consultations on targeted fuel subsidies amid rising international oil prices.