Petrol price hike: New app launched to provide fuel on subsidised rates

Subsidy plan involves fully automated, quota-based fuel supply system operated through mobile app for both consumers and retail operators
A large number of vehicles stand in a queue to fill their vehicle petrol tanks at a petrol pump in Islamabad, on May 24, 2022. — Online
A large number of vehicles stand in a queue to fill their vehicle petrol tanks at a petrol pump in Islamabad, on May 24, 2022. — Online

The federal government on Thursday announced its plans to launch a mobile application-based quota system for fuel distribution, with an aim at giving subsidies to low-income citizens, particularly two- and three-wheelers. 

The Oil and Gas Regulatory Authority (OGRA), in coordination with the ministries of finance, petroleum and information technology (IT), tested and finalised the details of the system. However, a final decision is still pending on whether this subsidy will be extended to small cars or remain limited to motorcycles and rickshaws.

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

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

How can bikers and rickshaw owners get fuel subsidy?

Here’s how bikers and rickshaw owners will get their fuel:

  1. You need to generate a digital voucher via the app.
  2. Then, scan the QR code at the petrol pump. The attendant’s device will automatically verify your remaining quota.

If any biker request more fuel than their balance allows, the system will dispense only the remaining eligible quantity. Ministry of IT is in discussions with mobile manufacturers to supply specialised devices, with an estimated cost of Rs36,000 per unit and retail pricing around Rs72,000.

Petrol pumps owners are directed to allocate specific dispensers or nozzles for these vehicles to facilitate subsidised fuel distribution.