ICMAP flags operational challenges in proposed fuel quota system

KARACHI: The Institute of Cost and Management Accountants of Pakistan (ICMAP) has identified a range of operational and administrative concerns linked to the government’s planned mobile-app-based fuel quota system for motorcycles and rickshaws, which is also intended to be expanded to small cars up to 800cc.

According to the institute, the proposed mechanism will require extensive logistical arrangements before it can be implemented effectively. These include equipping petrol pumps with the necessary devices, ensuring dependable connectivity in both cities and rural areas, and training staff across the country to operate the system.

ICMAP said the administrative load on implementing agencies is also likely to be considerable, as authorities would have to manage fuel quotas for millions of vehicles, process exemption applications, and respond to emergency situations. It warned that in the absence of strong verification systems, the programme could face problems such as duplicate registrations, incorrect data entry, and misuse of quotas across different regions.

Recommendations for wider access

The institute said the system should not rely solely on a mobile application. It recommended that unstructured supplementary service data (USSD) and SMS-based facilities also be introduced so that people without smartphones or internet access can still check their fuel quotas and generate vouchers.

It also proposed district-level registration campaigns to be carried out in coordination with the National Data Registration Authority, excise departments, and local administrations. The purpose, it said, would be to verify vehicle records and make sure eligible citizens are not left out of the scheme.

Among its other suggestions, ICMAP recommended that unused fuel quotas be allowed to carry forward for a limited period, enabling riders to manage their fuel use more flexibly over different days of the week.

Tiered structure and monitoring

The institute further called for a tiered quota model under which fuel allocations would vary according to user needs. Under this approach, essential service riders and delivery workers could be given higher quotas, commercial users such as rickshaw drivers could fall under a separate category, daily commuters could receive standard allocations, and occasional users could be assigned a lower baseline quota.

ICMAP stressed the need for a centralised, real-time monitoring system that would allow authorities to track the distribution of subsidised fuel at petrol stations and quickly detect irregularities. It also recommended clear and audited emergency override procedures for situations including medical emergencies and natural disasters.

The institute said linking quotas to a vehicle’s registered district could help curb cross-regional misuse. It also called for broad public awareness campaigns on registration procedures and voucher use, alongside complaint and support mechanisms such as hotlines and in-app assistance with clearly defined response timelines.

Phased rollout proposed

For implementation, ICMAP recommended a phased rollout beginning with a pilot in selected districts for around three months. It said this should be followed by expansion to major urban centres and transport corridors over six months, with nationwide coverage to be achieved within a year. The institute also proposed regular quarterly reviews to evaluate system performance and fuel demand.