Pakistanis to get Petrol via Mobile App vouchers as Iran Conflict chokes Oil Supply Chains
2026-03-25 - 12:30
ISLAMABAD – Global energy markets are facing renewed pressure as US–Iran conflict drives sharp volatility in oil and gas prices, and Pakistan is among countries which is chalking out strategy to deal with oil crisis. In smart move, the federal government moving ahead with plans to roll out mobile application–based quota system for petrol and diesel distribution across the country of around 250 million. The proposed system, which is being developed with input from the Oil and Gas Regulatory Authority (OGRA) and key federal ministries including finance, petroleum, and information technology, is designed to regulate fuel access through digital vouchers linked to vehicle registration and CNICs. The initiative is primarily targeted at bikers and rickshaws, though authorities are also considering whether to extend it to small cars, including small cars. Consumers will generate digital fuel vouchers through a dedicated mobile application, while petrol pump operators will verify and process these requests via a separate app. The system will automatically validate allocated quotas and restrict fuel dispensing accordingly—for instance, if a user requests more fuel than their assigned quota, only the permissible amount will be released. To operationalize the system, every fuel station will be required to maintain at least two mobile devices, while a free, pre-installed application will be provided to retailers. The Ministry of Information Technology is coordinating with mobile manufacturers to supply specially designed devices, estimated to cost Rs36,000 each, with retail prices expected to be around Rs72,000. Petrol stations will also be required to deposit funds into a designated government account to obtain these devices, with details to be issued by OGRA. The quota framework will link users directly to their vehicles and identity records, while final quota limits will be determined by the relevant cabinet committee. The system will function in a fully automated manner, drawing comparisons to earlier digital subsidy models such as the Ramazan package mechanism. Subsidies under the plan are expected to focus on two- and three-wheelers, with dedicated fuel dispensers to be allocated at petrol stations for these categories. However, a key policy decision is still pending on whether similar subsidies will be extended to four-wheel vehicles or restricted entirely. Officials acknowledged that the government is operating under significant strain due to tight fuel supply conditions, with demand remaining steady despite foreign exchange constraints. The cost of maintaining stable fuel prices has been partially offset through reductions in development spending and emergency budget allocations, with estimates suggesting that keeping petrol and diesel prices unchanged for two weeks has already cost around Rs70 billion. The move comes amid escalating global oil market volatility triggered by the ongoing Middle East conflict and disruptions in maritime routes, particularly the Strait of Hormuz, which have impacted international shipping and supply chains. In response, some policymakers argue that aligning domestic fuel prices with global trends could serve as a signal to curb unnecessary consumption. Another Petrol Bomb incoming? Rs55 Price hike likely amid surge in Global Oil Prices