Islamabad, March 27, 2026: The federal government and provinces on Friday agreed to roll out a mobile application-based quota system for fuel distribution aimed at providing targeted subsidies to low-income groups while curbing leakages in public spending.
The decision was taken during a high-level consultative meeting chaired by Finance Minister Muhammad Aurangzeb, where participants stressed the need to fast-track a transparent and technology-driven subsidy framework.
According to a statement issued after the meeting, the proposed system will ensure better targeting of relief, particularly for users of two- and three-wheelers, while maintaining close coordination between the centre and provinces.
Officials noted that the country’s fuel supply remains stable, following a detailed briefing by the Petroleum Division on the availability of petroleum products nationwide.
The Ministry of Information Technology and Telecommunication presented technological solutions to operationalise the subsidy mechanism, focusing on transparency, efficiency, and real-time monitoring.
Provincial leaders also shared their input during the session. Murad Ali Shah appreciated efforts to ensure uninterrupted fuel supply and called for behavioural measures to promote conservation. Marriyum Aurangzeb emphasised the need for flexible policy responses and passing on global price reductions to consumers. Meanwhile, Muzzammil Aslam lauded the federal government’s handling of petroleum supplies amid regional challenges.
The Finance Division informed participants that fiscal space remains limited, largely dependent on revenues from the petroleum levy, underscoring the need for carefully calibrated relief measures to maintain macroeconomic stability.
Minister Aurangzeb highlighted that the current situation should be treated as an opportunity for structural reforms, stressing data-driven policymaking in taxation and subsidy design.
How the app-based system will work
Under the proposed mechanism, both consumers and fuel retailers will use dedicated mobile applications in a fully automated system.
Each petrol station will be required to maintain at least two mobile devices for system operations, while consumers will access subsidies through a separate app linked to their vehicle registration and Computerised National Identity Card (CNIC).
Users will generate digital vouchers through the app, which retailers will scan or input into the system. The system will automatically validate the user’s quota. For instance, if a consumer requests 20 litres but has a 15-litre quota, only the eligible amount will be dispensed.
The subsidy will specifically apply to two- and three-wheelers, with petrol pumps required to allocate designated nozzles for subsidised fuel.
The Oil and Gas Regulatory Authority will oversee implementation, with oil marketing companies assigning focal persons at each retail outlet for smooth operations and complaint handling.
The IT ministry will also provide training materials, including demos and video tutorials, to facilitate adoption of the system. An emergency dispensation mechanism will be introduced to address exceptional cases through a designated approval process.
Officials said the initiative draws inspiration from previous targeted subsidy models and aims to ensure efficient delivery of relief while safeguarding public finances amid ongoing economic pressures.
