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Pakistan’s federal government is developing a mobile application to distribute petrol and diesel through a fixed per-citizen quota system, linked to CNICs and vehicle registration numbers, as the country’s petroleum subsidy bill crosses PKR 100 billion. The initiative, reported on March 25, 2026, comes as surging global oil prices force Islamabad to rethink how subsidised fuel reaches Pakistani consumers.
Quick Facts
The US-Israel-Iran war has triggered the closure of the Strait of Hormuz — the world’s most critical oil shipping route — pushing crude prices to a two-year high above $100 per barrel. Pakistan, which imports around one million barrels of oil monthly, felt the impact immediately.
Earlier in March 2026, the government raised petrol and diesel prices by Rs. 55 per litre — a 20% increase — before Prime Minister Shehbaz Sharif reversed course and froze prices again to honour a public promise. The federal treasury has since been absorbing the full price differential. If you want to understand how that freeze is straining public finances, read our earlier report on why Pakistan may be forced to end its petrol and diesel price freeze.
The Committee to Monitor Petrol Prices, chaired by Finance Minister Muhammad Aurangzeb, found that consumption has actually increased despite higher prices — making a quota-based demand management system unavoidable, according to The Express Tribune.
Citizens will register their Computerised National Identity Card (CNIC) and vehicle registration number on a government mobile application. Based on assessed need and supply availability, each citizen will receive a fixed daily quota of petrol or diesel, according to Daily Pakistan.
No fuel purchases above the daily quota will be permitted at subsidised rates through the system. The app is still under development as of March 25, 2026, with no official launch date confirmed.
Prime Minister Shehbaz Sharif is also in talks with President Asif Ali Zardari at the Aiwan-e-Sadr to extend the subsidy framework to Pakistan’s four provincial governments, as the federal treasury currently bears the entire PKR 100 billion burden alone.
Every registered vehicle owner faces impact — motorcyclists, private car owners, freight operators, and farmers running diesel-powered tube wells. A daily cap could hit inter-city bus operators and agricultural users hardest, as their operational requirements often exceed what a standard daily quota would cover.
The All Pakistan Petrol Pump Owners Association (APPPOA) had already written to Prime Minister Shehbaz Sharif warning that any informal quota system without proper communication risks creating panic buying and artificial shortages at filling stations.
The government has not confirmed whether commercial vehicle operators will receive differentiated quotas from private car owners — a decision that will determine how severely Pakistan’s transport and agriculture sectors are disrupted.
Finance Minister Muhammad Aurangzeb, chairing the petroleum review committee on March 25, 2026, said ensuring uninterrupted fuel availability remains the government’s foremost priority. He directed authorities to monitor global supply chains and stock levels continuously, according to the Finance Ministry.
To further stabilise supply, the government has also imposed a Rs. 300 per litre levy on high-octane fuel used in luxury vehicles, a measure expected to save Rs. 9 billion per month — savings earmarked for public relief.
Fuel cargoes for March and April 2026 have been largely secured, with Pakistan rerouting Saudi and UAE crude shipments via the Red Sea port of Yanbu to bypass the Hormuz closure. The Economic Coordination Committee has approved Rs. 27.1 billion from the Prime Minister’s Austerity Fund to continue paying OMC price differentials.
Analysts expect a phased app rollout — urban centres first — contingent on finalising a cost-sharing deal with the four provinces. Pakistan’s fuel subsidy model has hit its fiscal ceiling. The quota app is Islamabad’s attempt to hold the price line without emptying the treasury — but its success depends entirely on fair quota design and fast digital deployment at filling stations nationwide.
Q: What is Pakistan’s new petrol quota app? A: Pakistan’s federal government is developing a mobile app where citizens register their CNIC and vehicle number to receive a fixed daily fuel quota. No purchases above the assigned limit are allowed at subsidised rates. The app is under development as of March 25, 2026, with no launch date set.
Q: How much has Pakistan spent on fuel subsidies in 2026? A: Pakistan has spent over PKR 100 billion on petroleum subsidies as of March 2026. The federal government is absorbing the full price differential between international oil rates and domestic pump prices to prevent further hikes.
Q: What are current petrol and diesel prices in Pakistan? A: As of March 14, 2026, petrol costs Rs. 321.17 per litre and High Speed Diesel costs Rs. 335.86 per litre, per OGRA notification. These rates are maintained through federal government subsidies.
Q: When will Pakistan’s fuel quota app launch? A: No official launch date has been announced as of March 25, 2026. Sources suggest a phased rollout starting in urban centres, subject to a cost-sharing agreement with Pakistan’s four provincial governments.
Q: Why is Pakistan rationing petrol and diesel in 2026? A: The Strait of Hormuz closure due to the US-Israel-Iran war pushed global crude above $100 per barrel. Pakistan’s subsidy bill crossed PKR 100 billion while domestic fuel consumption kept rising, prompting the government to introduce a digital quota system.