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Energy

No Justification for Suspending Use of Bank Debit Cards as Fuel Cards

The plan to use bank debit cards as fuel cards could have prevented the issuance of at least 10 million smart fuel cards and saved a lot of money. It remains unclear why its implementation was suspended at the eleventh hour.

According to ISNA, the scheme was ready to be launched in July. It was an achievement of e-government and could have helped the National Iranian Oil Products Distribution Company, a subsidiary of the National Iranian Oil Company, speed up the process of preparing new fuel cards.

The first phase of using fuel cards at the filling stations commenced on August 13 in four mega cities --  Tehran, Karaj, Isfahan and Tabriz. The initiative to use bank debit cards as fuel cards was first proposed by ICT Minister Mohammad Javad Azari Jahromi. 

It was announced in 2018 that close to 10 million cards should be issued at an estimated cost of $30 million. Executive bodies including the Central Bank of Iran, ICT and NIOPDC decided to collaborate to reduce costs and the final proposal was to link fuels cards and bank debit cards for those who had a card and converting other car and motorcycle owners' bank cards to fuel cards.

According to deputy ICT minister and head of Iran IT Organization, Amir Nazemi, the plan was approved by the officials and ready on time. Strangely, the measure was suspended by NIOPDC at the last moment with no explanation.

Had the project been undertaken, people would not have had to stand in long queues at designated police offices or post offices to get their cards. Furthermore, a great deal of money could have been saved, Nazemi added.

On July 19 NIOPDC said "So long as gasoline is not rationed, the plan to introduce bank debit cards as fuel cards is irrelevant and will not be implemented.” The logic behind the move has been questioned by IT experts and officials who have not yet expressed their views openly. 

Rejecting rumors about technical problems, Jahromi has reiterated that the system was ready to be launched without any flaws. 

IT officials and Nazemi have made known their dissatisfaction with the plan's suspension. They say that they were not able to do much to convince (senior) officials in the energy sector to think twice about their decision.