ISLAMABAD:
The government is working on a comprehensive package of quota-based fuel supply systems aimed at ending subsidies across the board.
A meeting was held in the Oil and Gas Regulatory System to finalise a plan of allocating petrol distribution through a quota system for the customers aimed at conserving energy supplies.
The meeting was attended by the officials of the IT ministry, finance and petroleum divisions to finalize a plan.
The Ministry of IT, finance, Oil, etc., held a joint meeting to finalise a quota-based fuel supply system.
During the meeting, it was informed that ministries of finance and foreign affairs are engaged in parallel efforts regarding Iran and Saudi Arabia to manage the situation. The system is being fast-tracked to ensure consistency across all pumps and prevent operational discrepancies.
The government has claimed that it had given Rs69 billion subsidy to the consumers of petrol and diesel during the last two weeks and now plans direct subsidy for two wheelers and three wheelers.
The four wheelers owners may not qualify for the subsidy.
The meeting finalised a mobile application-based quota system for fuel for two- and three-wheelers, which may possibly include up to 800cc vehicles, to ensure a targeted subsidy to the low-income strata and to minimise oil consumption through pricing signals.
The App will help implement the system of direct subsidy through allocation of petrol quota. The system will be app-based and fully automated. A free, pre-installed app for retail operators will be provided, while consumers will use a separate open app.
Hardware Distribution
The government mandates a minimum of two mobile phones per retail outlet to run the system. The Ministry of IT is coordinating with manufacturers to provide specialized phones.
Initial costs are estimated at Rs36,000 per unit, with retail pricing around Rs72,000. Outlets are required to deposit funds to a designated government account to ensure immediate delivery of devices.
The account number will be communicated by Ogra.
Quota Mechanism & Vouchers
Vehicle-based quotas (e.g., 20 liters for motorcycles) will be linked to the user’s app via registration number and CNIC. Users will generate a digital voucher through the app.
Retailers will scan/enter the voucher in their app; the system will auto-validate the available quota (e.g., if a user requests 20L but has a 15L quota, only 15L will be dispensed).
This mechanism is similar to the previously successful Ramadan Package model.
Government Subsidies & Pricing
The government is providing subsidies for 2-wheelers and 3-wheelers.
Retailers will dedicate specific dispensers or nozzles for 2-wheelers and 3-wheelers to facilitate subsidized fuel distribution. Clarification is pending on whether subsidies will continue for 4-wheelers or if they will be eliminated.
The government has ensured timely pricing to protect retailers from licensing issues and price hikes, aiming to avoid the crisis of 2020. 5. Focal Person Submission by OMCs.
While OGRA already has outlet information, Oil Marketing Companies (OMCs) are required to submit details of the focal person for each retail site, including, Focal person name , CNIC , Contact mobile number.
Implementation & Oversight
Retailers must share focal person details and contact numbers immediately for coordination. The Ministry of IT will provide demos and video tutorials on operating the system.
In case of emergencies, a dispensation system is available for approvals through a designated process. The government is facing critical conditions regarding fuel supply chains.
