Govt taps 24,000 phones to power fuel subsidy scheme

The government has decided to procure around 24,000 mobile phones as part of a nationwide rollout of a digital, app-based fuel subsidy system, in a major step to manage the ongoing energy crisis through targeted relief and tighter monitoring. The devices, to be deployed at petrol pumps across the country, will form the backbone of a new system designed to regulate the distribution of subsidised petrol through a mobile application. Under the plan, the Ministry of IT will oversee the initiative, while the National IT Board will determine the pricing of the mobile phones. Oil marketing companies will purchase the devices and supply them to petrol pumps, with around 12,000 pumps expected to be equipped with two mobile phones each. The system aims to streamline and digitise subsidised fuel distribution by allocating two dedicated nozzles at each petrol pump for subsidised petrol. Through the mobile application, consumers, particularly motorcyclists and three-wheeler owners, will be able to access subsidised fuel using digital vouchers or QR codes issued via the app. Sources said the mobile application has already been developed and is in the final stages of testing. Under the proposed framework, eligible users will receive a fixed monthly quota of subsidised petrol, with motorcycles expected to be allocated between 20 to 30 litres per month. Consumers will not be allowed to exceed their assigned quota, ensuring controlled and targeted distribution. A final decision on extending the facility to vehicles up to 800cc is yet to be taken. However, the government is considering expanding the scheme to include selected additional categories of users under a targeted subsidy model. Officials said the initiative is part of a broader effort to address the energy crisis, with multiple policy options currently under consideration. In view of potential emergency situations, alternative contingency plans have also been prepared. Alongside the rollout, authorities have initiated a monitoring process at petrol pumps nationwide to ensure transparency and efficiency in the system. The use of digital verification through QR codes is expected to minimise misuse and improve accountability in fuel distribution. Sources added that an official announcement regarding the rollout of the QR code-based subsidised petrol system is expected soon.