ISLAMABAD: The government has decided to launch a mobile app to manage fuel quotas for motorcycles, rickshaws, and potentially small cars (up to 800cc). The goal is to provide a direct subsidy to low-income drivers while using higher prices to encourage everyone to save fuel. However, quota limits will be finally decided by the concerned cabinet committee. In a meeting, the Oil and Gas Regulatory Authority (OGRA), the Ministry of Information Technology, the Petroleum Division, and the Finance Division discussed the matter and finalised subsidies as a relief package for the poor segment of society to safeguard it against a massive increase in domestic oil prices. A plan involves a quota-based fuel supply system to be operated through a mobile application and is fully automated. A free, pre-installed app for retail operators will be provided, while the consumers will use a separate open app. The Ministry of Information Technology, in coordination with cellular phone manufacturers, will provide specialised phones at an initial estimated cost of Rs36, 000 per unit, with retail pricing around Rs72, 000. Petrol stations have also been required to deposit funds into a designated government account to ensure the immediate delivery of devices. The account number will be communicated to them by the OGRA. READ ALSO: Austerity plan: Intelligence Bureau tasked to monitor implementation Vehicle-based quotas (e. g. , 20 litres for motorcycles) will be linked to the user’s app via a registration number and Computerised National Identity Card (CNIC). Users will generate a digital voucher through the app. 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 mechanism was similar to the previously successful Ramazan Package model. Retailers and petrol stations will be required to dedicate specific dispensers or nozzles for these vehicles to facilitate subsidised fuel distribution. Timely pricing to protect retailers from licensing issues and price hikes will be ensured 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 the OGRA for round-the-clock monitoring of the scheme to redress consumer complaints. The details of focal persons, including their names, mobile phone numbers, and CNICs, will also be available to OGRA. For the implementation and oversight, the details of retailers’ focal persons and contact numbers will also be provided to the 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. Previous fuel subsidy proposals failed to gain approval due to various administrative and technical hurdles. ” In March 2023, former Minister of State for Petroleum Musadik Malik introduced a petrol cross-subsidy plan to relieve low-income consumers by raising fuel prices for wealthy car owners. The plan proposed increasing prices by Rs100 per liter for high-income groups, with proceeds subsidizing motorcycle/rickshaw users, but was shelved following rejections from the IMF. In 2019, the OGRA proposed introducing 80-82 RON fuel for motorcycles in Pakistan to provide a cheaper option, amid rising petrol prices and to support older refinery operations. The suggestion was considered by the Prime Minister’s office, though it faced opposition from stakeholders, with Pakistan having previously shifted to a higher 92 RON standard. Copyright Business Recorder, 2026
Motorcycles, rickshaws and small cars: Mobile app-based fuel quota system finalised
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