Pakistan Petroleum Dealers Association Wednesday refused to participate in the government’s proposed subsidized petrol scheme due to practical difficulties in its implementation.
According to the association’s chairman, Sami Khan, the scheme is difficult to apply and may result in conflicts between the dealers and the public.
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It’s good to hear that the Pakistani government is taking steps to reduce the burden on the lower income group by reducing the prices of petroleum products. It remains to be seen how much the prices will be reduced and how effective the plan will be in providing relief to the targeted groups. The decline in global oil prices is definitely a positive factor in this regard.
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The government’s plan to reduce fuel prices for certain segments of society may face some hurdles due to the need to create additional resources and the IMF’s conditions. It will be interesting to see how the negotiations with the IMF progress and whether the government can implement its plan to provide relief to lower-income groups.
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Khan also pointed out that the government did not consult with the association before proposing the scheme, and that the energy sector is already facing a circular debt issue. He further noted that the staff working at petrol pumps may not be equipped with the necessary computer and banking systems to implement the scheme.
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The association is calling for the government to consult with stakeholders and equip petrol pump staff with the latest gadgets before applying any new schemes. It remains to be seen how the government will respond to these concerns and whether it will be able to successfully implement the proposed scheme.