The tokenization plan for bank cards has been launched to create transparency in fuel distribution and prevent smuggling in the country. This plan aims for 95% usage of personal cards and the identification of transactions in line with the 1403 budget law. Currently, 40% of refueling is done through "emergency cards of stations," which do not register any identity information of the end consumers. This issue has led to an increased price gap between subsidized and free gasoline and the attractiveness of fuel smuggling.
Benefits of Tokenizing Bank Cards
This plan serves as a non-inflationary technological solution that helps eliminate the monopoly of emergency cards by profiteers and makes energy subsidy distribution targeted. The tokenization process, which takes one to two minutes, will help identify unusual consumption patterns and cut off quotas for smugglers. Thus, only real consumers will be able to access energy subsidies.
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Preventing Resource Waste
This plan allows the government to address network leaks instead of putting pressure on the general public. By eliminating anonymous fuel distribution and identifying transactions, a consumption profile for each national ID will be created, which will aid in better identifying consumers. This method will also help reduce logistics costs and support transportation-based businesses.
The development of this system as an intelligent model of hidden subsidies in Iran can help prevent rising public costs and gasoline imbalances. The recorded price of 100,000 Tomans for gasoline on the energy exchange relates to super export and commercial gasoline and reflects the opportunity cost lost. This plan, as a solution for consumer identification, will help clarify and make access to fuel fairer.
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