Pakistan Government and Fuel Dealers Resolve Subsidy Deadlock

The federal government of Pakistan and petroleum dealers reached an agreement on September 17, 2026, to resolve a deadlock over a fuel relief package. The dispute began when the Petrol Pump Owners Association refused to provide fuel under the scheme, citing a lack of prior consultation and concerns over how subsidies would be paid to dealers.

During a meeting in Islamabad chaired by Petroleum Minister Ali Pervaiz Malik, both parties agreed that outstanding payments to eligible dealers will be routed through the State Bank of Pakistan and credited to accounts within 48 hours. The government is expected to issue an official notification detailing this process shortly.

The relief package utilizes a token-based registration system to provide monthly fuel subsidies for two- and three-wheelers, capped at 20 litres, and small cars with engines up to 800cc, capped at 30 litres.