Pakistan Moves to Roll Out App-Based Petrol Subsidy for Low-Income Users

Islamabad:

Pakistan is preparing a targeted petrol subsidy for low-income consumers as part of broader measures to tackle the ongoing energy crisis, sources said, with a dedicated mobile application already developed to manage the scheme.

According to officials, the subsidy system is currently undergoing testing, with authorities aiming to roll it out through a digital mechanism designed by the Ministry of IT. The initiative is expected to primarily benefit two- and three-wheeler owners, while a final decision on extending relief to vehicles up to 800cc is yet to be made.

Under the proposed framework, eligible motorcycle users may receive a monthly petrol quota of up to 20 litres. The subsidy will be delivered through a digital voucher system linked to the consumer’s vehicle registration number and national identity card, ensuring strict monitoring and preventing misuse.

Sources said approximately 12,000 petrol pumps nationwide will be integrated into the system, with designated fuel nozzles for subsidised petrol. Each pump will be equipped with two mobile devices to facilitate transactions via the official app, allowing retailers to verify and dispense fuel seamlessly.

Separate application modes will be introduced for consumers and retailers, while oil marketing companies will be required to provide mobile devices at fuel stations. The Ministry of IT is also in talks with mobile manufacturers to procure the necessary hardware.

To ensure transparency, consumers will not be allowed to exceed their allocated quota, and a 24/7 monitoring system will be established to address complaints and oversee operations. In case of emergencies, authorities are also working on an alternative fuel supply mechanism.

Officials added that training videos will be displayed at petrol stations to guide users on accessing the subsidy, with the IT Ministry overseeing public awareness and digital onboarding efforts.

Meanwhile, the government is expected to pass on the impact of rising global oil prices to other consumers, signaling a targeted rather than universal relief approach.