Government Prepares Digital Fuel Access Plan Amid Oil Market Pressure

The government is moving closer to introducing a mobile app-based fuel quota system, as it looks for ways to manage rising oil prices during the ongoing global energy crisis, according to a report by Dawn.

The proposed plan focuses on motorcycles and rickshaws, with the government still considering whether smaller cars should also be included in the system.

How the fuel app system will work

Under the plan, the government will use a digital platform to regulate fuel purchases. Vehicle owners will register through a mobile app, linking their identity and vehicle number to a fixed fuel quota.

Before refuelling, users will generate a digital approval through the app. Petrol pumps will verify this instantly, ensuring that only the allocated amount of fuel is provided. If a user attempts to exceed their quota, the system will automatically limit the supply.

Fuel stations will also be equipped with dedicated devices to run the system efficiently, allowing quick validation and consistent implementation across all outlets.

Government targets subsidies more precisely

The government aims to use this system to deliver targeted fuel subsidies to lower-income users, particularly those who rely on motorcycles and rickshaws for daily commuting and work.

At the same time, the fuel quota system is expected to act as a control measure, encouraging reduced fuel consumption as prices remain volatile.

To support operations, petrol pumps may introduce separate dispensing points for vehicles covered under the scheme, while oil marketing companies will oversee implementation at each site.

Why the government is taking this step

The government is facing increasing pressure due to global oil market instability, driven by geopolitical tensions and disruptions in key supply routes.

Despite higher prices, fuel demand has remained steady, increasing the financial burden on the government. Recent efforts to keep fuel prices stable have already required significant funding, making longer-term solutions necessary.

What comes next

A final decision from the government is expected soon, particularly on whether the system should expand beyond two- and three-wheelers.

Officials say the mobile app-based fuel system is being fast-tracked to ensure better control, transparency, and efficiency in fuel distribution as economic challenges continue.