Government uses 24,000 phones to power fuel subsidy program

ISLAMABAD:

The government has decided to acquire around 24,000 mobile phones as part of the nationwide rollout of an app-based digital fuel subsidy system, a major step to manage the current energy crisis through targeted relief and stricter monitoring.

The devices, which will be deployed at petrol pumps across the country, will form the backbone of a new system designed to regulate the distribution of subsidized petrol via a mobile app.

Under the plan, the IT ministry will oversee the initiative, while the National IT Council will determine the price of mobile phones. Oil marketing companies will purchase the devices and supply them to petrol pumps, with around 12,000 pumps to be equipped with two mobile phones each.

The system aims to streamline and digitalize the distribution of subsidized fuel by allocating two dedicated nozzles to each fuel pump for subsidized gasoline. Through the mobile app, consumers, especially motorcyclists and three-wheeler owners, will be able to access subsidized fuel using digital vouchers or QR codes issued through the app.

Sources said the mobile application had already been developed and was in the final stages of testing.

Under the proposed framework, eligible users will receive a fixed monthly quota of subsidized gasoline, with motorcycles expected to receive between 20 and 30 liters per month.

Consumers will not be allowed to exceed their allocated quota, ensuring controlled and targeted distribution.

A final decision regarding the extension of the installation to vehicles up to 800 cc has not yet been made. However, the government plans to expand the program to include additional categories of selected users under a targeted subsidy model.

Officials said the move is part of a broader effort to address the energy crisis, with multiple policy options currently under consideration. Considering the potential emergency situations, alternative contingency plans have also been prepared.

Alongside this deployment, authorities have launched a process of monitoring petrol pumps across the country to ensure the transparency and efficiency of the system.

The use of digital verification via QR codes is expected to minimize abuse and improve accountability in fuel distribution.

Sources added that an official announcement regarding the rollout of the QR code-based subsidized petrol scheme was expected soon.

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