• Fuel quota system may also be extended to 800cc cars
• Rationing linked to CNIC, vehicle registration
• Users generate vouchers; system verifies quota automatically

ISLAMABAD: The government has finalised a mobile application-based quota system for fuel distribution aimed at providing targeted subsidies to low-income users, primarily two- and three-wheelers, with a possible extension to vehicles up to 800cc.

The details of the system have been tested and finalised by the Oil and Gas Regulatory Authority (Ogra) in coordination with the ministries of finance, petroleum and information technology, a senior government official told Dawn.

A final decision is pending on whether the scheme will be extended to small cars or remain limited to motorcycles and rickshaws.

The plan involves a fully automated, quota-based fuel supply system operated through mobile applications for both consumers and retail operators.

“A free, pre-installed app will be provided to retailers, while consumers will use a separate application,” the official said, adding that each fuel station will be required to maintain at least two mobile devices for system operation.

The Ministry of IT is coordinating with mobile manufacturers to supply specialised devices, with an estimated cost of Rs36,000 per unit and retail pricing around Rs72,000. Petrol stations have been asked to deposit funds into a de­­signated government account for the timely procurement of these devices, with account details to be shared by Ogra.

Talking about the quota mechanism and vouchers, an official said vehicle-based quotas will be linked to the user’s app via a registration number and their Computerised National Identity Card (CNIC). However, quota limits will be decided by the relevant cabinet committee.

The users will generate a digital voucher through the app, while the retailers will scan or enter the voucher, leading the system to auto-validate the available quota. For example, if a user requests 20 litres but has a 15-litre quota, only 15 litres will be dispensed. The official said the mechanism was similar to the previously successful Ramazan Package model.

On the financial pricing side, the government will be providing subsidies for two- and three-wheelers. Retailers and petrol stations will be required to dedicate specific dispensers or nozzles for these vehicles to facilitate subsidised fuel distribution.

The critical decision is still pending on whether subsidies will also be extended to four-wheelers or if they will be eliminated. The official said that the government was trying to ensure timely pricing to protect retailers from licensing issues and price hikes to avoid the crisis of 2020.

All oil marketing companies (OMCs) will also be required to appoint focal persons for each retail site for seamless operations of the scheme and provide their contact details to Ogra for round-the-clock monitoring of the scheme to redress consumer complaints. The details of focal persons — including their name, mobile phone numbers and CNIC — will also be available to Ogra.

For implementation and oversight, the details of retailers’ focal persons and contact numbers will also be provided to OMCs and the petroleum division. The IT ministry will provide demos and video tutorials on how to operate the system. In case of emergencies, a dispensation system will be made available for approvals through a designated process.

Officials said the government was facing critical conditions regarding fuel supply chains. They said demand did not decline despite challenging conditions and heavy foreign exchange req­uirements, while the additional fiscal burden was currently being met through cuts in the development programme and special emergency allocations in the budget. So far, for two weeks of uncha­nged petrol and diesel rates, the cost has been estimated at Rs70 billion.

Published in Dawn, March 26th, 2026