Hamid Mollazadeh
Iran’s parliament has approved a sweeping reform to the country’s gasoline rationing system, mandating that, as of the beginning of the Iranian year 1405 (March 21), fuel quotas will be transferred entirely from physical fuel cards to motorists’ bank cards.
The decision marks a significant step in the government’s effort to modernize fuel distribution and streamline public services in one of the world’s most heavily subsidized energy markets.
The measure was passed on February 16 during an open parliamentary session reviewing the energy provisions of the 1405 national budget bill. Lawmakers voted to transfer gasoline quotas from fuel cards to bank cards. In practical terms, this means that each vehicle owner’s subsidized gasoline allowance will be defined and stored on their bank card rather than on a separate fuel card.
Fuel Cards to Remain Despite Reform
Despite initial assumptions, the reform does not abolish the fuel card system outright—at least not immediately. Officials have clarified that until technical glitches are fully resolved, fuel cards will remain in circulation.
The rationing mechanism and procedures at fuel stations will not fundamentally change. Motorists will continue to use fuel cards to register the volume of gasoline dispensed. What will change, gradually, is where the quota itself is recorded: instead of being stored on the fuel card’s chip, it will be linked to the owner’s banking account.
Hamid Pourmohammadi, head of the Plan and Budget Organization, emphasized that the legal groundwork for transferring fuel quotas to the banking system had already been laid in previous legislation.
However, the new parliamentary vote makes full implementation mandatory from 1405 onward. According to him, the move effectively completes the transition toward replacing the fuel card’s quota function with a bank-based mechanism, reducing the administrative burden associated with issuing and replacing fuel cards.
Under the new policy, the “smart fuel management” project enters a new phase. The central objective is to connect gasoline quotas to bank cards operating within Iran’s “Shetab” interbank network, in coordination with the Central Bank and the Oil Ministry.
Multi-Purpose Tools
Bank cards are expected to evolve into multi-purpose tools, serving not only as payment instruments but also as platforms for managing fuel entitlements.
In simple terms, motorists will be able to manage their subsidized gasoline allocation using the same card they use for daily financial transactions.
Yet authorities insist that the structural backbone of the existing fuel card infrastructure will not be dismantled overnight. Fuel cards will still be required at pumps to log consumption. The difference lies in the backend: the subsidy credit will reside in the banking system rather than on a standalone card.
Successful implementation hinges on completing banking and data infrastructure. The Central Bank is tasked with ensuring that commercial banks upgrade their systems to interface seamlessly with the fuel management platform.
Vehicle owners, meanwhile, must update and verify their personal information through the government’s digital service portal to ensure proper alignment between national ID numbers, registered mobile numbers and bank account details. This data synchronization is intended to prevent misuse and ensure accurate allocation.
Authorities plan to roll out the reform initially on a pilot basis. The phased approach aims to identify technical, operational and cybersecurity vulnerabilities before nationwide deployment.
Policymakers appear keen to avoid disruptions to fuel stations or the banking system, recognizing that abrupt implementation in a sensitive sector such as energy could trigger public dissatisfaction. Energy analysts argue that transferring quotas to the banking system could enhance transparency in fuel distribution.
Centralizing Data
By centralizing data within financial networks, regulators would gain better oversight of allocation and consumption patterns. This could help curb illicit resale of subsidized fuel and reduce fraud linked to lost or duplicated fuel cards.
In addition, the government stands to cut costs associated with producing, maintaining and replacing physical cards—a recurring fiscal burden in recent years.
From a broader consumption management perspective, integration with banking data could provide policymakers with more sophisticated analytical tools.
Gasoline demand in Iran has been rising steadily, at times reaching levels that strain domestic refining capacity. Access to granular consumption data by region and time period may enable more targeted policy responses and improved demand-side management.
Nevertheless, the reform is not without risks. Concerns over data privacy and cybersecurity loom large. Linking the fuel system to the banking network requires large-scale data exchange, potentially exposing sensitive financial information.
Building Public Trust
Strengthening digital security frameworks and clearly communicating data protection protocols will be critical to building public trust.
For consumers, the most visible change will concern access to quotas, not the size of those quotas. The existing rationing regime and price structure—featuring subsidized and market-based tiers—remain intact. The reform does not entail an increase or decrease in fuel allowances. Instead, it alters the platform through which those allowances are administered.
At a macro level, the decision reflects a broader push toward digitalizing public services in Iran, following similar transformations in cash subsidy payments and tax administration.
If executed effectively, the initiative could become a model for integrating state service platforms with financial infrastructure, reducing bureaucracy and operational costs.
The real test will lie in execution. Coordination between the Central Bank and the Oil Ministry, the resilience of technical systems and the public’s confidence in data security will determine whether 1405 becomes a turning point in Iran’s energy governance—where financial technology and fuel policy finally converge.
