24 Nov 2011Iran Smart Fuel System

Iran Fuel Card Project (IFCP)

NIORDCNational Iranian Oil Product

Distribution CompanyN.I.O.P.D.C

The Gasoline is Provided & Distributed by the government:

• Production

• Import The price of Gasoline Impact on National Economy Social Justice Smuggling

Very Huge Consumption Increase Rate

• Increasing the number of cars

• Very low price

• Using old cars

• Uncontrollable Consumption

• Uncontrollable Distribution

• Smuggling

Cutting the Government Support (Releasing the Price) Replacing Gasoline with Gas Using a Technology that can:Using a Technology that can:

• Managing and controlling the ConsumptionManaging and controlling the Consumption

• Managing and controlling the DistributionManaging and controlling the Distribution

The main constraint was: TIMETIME!

The First Nationwide Smart Card Project in the World

Various StakeholdersMinimum Social & Economical ImpactsAcceptabilityLack of Infrastructures & DatabasesSecurity & PrivacyExpandability, …

Preparing fuel consumption database Monitoring, managing and control of the fuel consumption Preventing fuel smuggling out of Iran Proper distribution of subsidies to people in need Monitoring and control of gas station operationsFacilitating Payment Providing a unique security and control in the country

System Requirements Analysis

System Design

Procurement & Sub Contracting

Construction & Testing

Card Personalization & Distribution

System Integration

Implementation

One smart card for each vehicle (car, motorbike, truck). Dynamic monitoring and control of the fuel consumption. Multi layer quota and pricing model. Centralized management of the quota and pricing model.Offline link between gas station and data center. Payment through PSP (Payment Service Provider). Online network of Customer Support Centers Centralized card issuing and management.

Smart Card

Cu

stom

er S

uppo

rt

POS / Terminal

Gas Station LAN

Network Infrastructure

Data Center

Data Collection & Police

Secu

rity

Soft

war

e

Tra

inin

g &

Aw

aren

ess

Rai

sin

g

Pla

nnin

g

Fuel Smart Card System

Banks & Banking Network

Police Department

Card Management Center

Customer Support Centers

1402

226Oil Zones 37 Areas

2814Gas Stations

Data Center

OilZones

Oil Storages

Customer Support Centers

Pullers

Data Center Data from Pullers to Gas StationsData from Gas Stations to PullersData from Pullers to Data CenterData from Data Center to Pullers

Management)Data Center(

More than 20,000,000 cards were distributed!

27,000 POSs were installed A very high performance data center was

established A robust communication link between all

Gas Stations and Data Center is established

The project takes about 2 years The whole project budget was about 100

million dollars

Manageability of fuel distribution and consumption 25% Fuel Consumption Decrease Direct ROI : 15 Days! Changing the Public Consumption Model Air pollution reduction Improving Public Transportation Experiencing a very huge and complex Smart Card

project Top level managers rely on IT for big project

Anual Fuel Consumption In Last 20 Years

35

50.5

56.360.7

67

73.6

89

81

42.539.137.7

32.931.431.329.426.9

24.622.7

21

6664.4

73.6

67

60.756.3

50.545.8

0

10

20

30

40

50

60

70

80

90

100

1989

-199

0

1990

-199

1

1991

-199

2

1992

-199

3

1993

-199

4

1994

-199

5

1995

-199

6

1996

-199

7

1997

-199

8

1998

-199

9

1999

-200

0

2000

-200

1

2001

-200

2

2002

-200

3

2003

-200

4

2004

-200

5

2005

-200

6

2006

-200

7

2007

-200

8

2008

-200

9

Mill

ion

liter

per

day

Expectancy of last 2yearsReal Consumption

Anual Fuel Import in Last 20 Years

1.7 0.9 1.72.9

4.31.9

3.4 2.7

5.83.8 3.4

5.37.8

10.4

15.1

22.724.8

27.5

18.920.6

1.7 0.9 1.72.9

4.31.9

3.4 2.7

5.83.8 3.4

5.37.8

10.4

15.1

22.724.8

27.5

35.9

44.8

0

5

10

15

20

25

30

35

40

45

50

1989

-199

0

1990

-199

1

1991

-199

2

1992

-199

3

1993

-199

4

1994

-199

5

1995

-199

6

1996

-199

7

1997

-199

8

1998

-199

9

1999

-200

0

2000

-200

1

2001

-200

2

2002

-200

3

2003

-200

4

2004

-200

5

2005

-200

6

2006

-200

7

2007

-200

8

2008

-200

9

Mill

ion

liter

per

day

Import

Expectancy of last 2years

25 million liter of Import reduction Per day

More than

13 B USD Saving

Managing large scale smart card projectsPaying high attention for trainingPlan for change managementKeep the users much informedTechnology Independent Design Divide and conquer is the best methodology

for solving big problem

• There is a big trend to the Smart Card Technology in IRAN

• IRAN Fuel Card Project can be a good example for similar projects

• Smart Card Projects can solve many economic and Controlling problems :

Tracing Smuggling control Tax and ……

We are open to share our experience for all companies, which are willing to run such projects