Govt Finalizes Petrol Subsidy App to Target Low-Income Consumers

The government has finalized a digital application to roll out targeted petrol subsidies for low-income consumers as part of efforts to manage rising fuel costs while limiting fiscal pressure.

The app, developed by the Pakistan Digital Authority, has completed user-level and retailer-level testing. Sources said the system includes security checks and data verification features to ensure transparency in subsidy distribution.

Retailers have tested transaction handling and quota verification systems, while consumers can register and check eligibility through the platform. Load testing has also been conducted to evaluate the system’s ability to handle large-scale simultaneous access.

Authorities are currently feeding data into the system, including records from the Benazir Income Support Programme, along with datasets prepared during the Covid-19 pandemic and flood relief efforts, to identify eligible individuals.

Under the proposed mechanism, subsidies will be limited to low-income groups, with specific petrol quotas allocated to motorcycle and rickshaw owners. The eligibility criteria include the registration of the vehicle in the applicant’s name. The federal government has also directed provinces to facilitate the registration process.

The development comes as policymakers review options to reduce fuel consumption, including smart lockdown measures and administrative controls. Despite sufficient fuel availability, officials say the main concern remains the growing financial burden on the national exchequer.

The government is also considering maintaining petrol prices for eligible segments while increasing rates for others.

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