Digital Fuel: How the New Subsidy System Works

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The initiative aims to provide targeted relief to low-income segments, specifically targeting motorcycles, rickshaws, and potentially small cars up to 800cc.

• ​Hardware Deployment: Approximately 12,000 petrol stations across Pakistan will be equipped with these devices. Each station will receive at least two mobile phones to manage the digital transactions.

• ​Zero Cost to Taxpayers: Federal IT Minister Shaza Fatima Khawaja confirmed that the procurement will not cost the national exchequer a single rupee; instead, Oil Marketing Companies (OMCs) will purchase the devices and distribute them to their respective retail sites.

• ​The Quota System: Eligible users will receive a monthly quota (proposed at 20 liters for motorcycles). This quota is linked to the user’s CNIC and vehicle registration number.

• ​Digital Vouchers: Consumers will generate a digital voucher via a consumer app. The petrol pump operator will then use the government-issued phone to scan the voucher and validate the remaining quota before dispensing fuel.

​Transparency and Monitoring

​To prevent the “leakage” of public funds and ensure the subsidy reaches those truly in need, the system is fully automated.

​”The system will automatically restrict supply to approved limits. If a user requests 20 liters but only has 15 liters remaining in their monthly quota, the app will only authorize 15 liters,” stated a senior official from the IT Ministry.

​The Oil and Gas Regulatory Authority (OGRA) will maintain a real-time dashboard to monitor the supply chain and handle consumer complaints 24/7. This digital shift is expected to avoid the manual hurdles and hoarding issues seen in previous years.