1. Fuel Smart System NIORDC National Iranian Oil Product Distribution Company N.I.O.P.D.C 24 Nov 2011 Iran Smart Fuel System Iran Fuel Card Project (IFCP)

2. In the name of God

3. History • The Gasoline is Provided & Distributed by the government: • Production • Import • The price of Gasoline • Impact on National Economy • Social Justice • Smuggling

4. Problem • Very Huge Consumption Increase Rate • Increasing the number of cars • Very low price • Using old cars • Uncontrollable Consumption • Uncontrollable Distribution • Smuggling

5. Solutions • Cutting the Government Support (Releasing the Price) • Replacing Gasoline with Gas • Using a Technology that can: • Managing and controlling the Consumption • Managing and controlling the Distribution • The main constraint was: TIME!

6. Challenges • The First Nationwide Smart Card Project in the World • Various Stakeholders • Minimum Social & Economical Impacts • Acceptability • Lack of Infrastructures & Databases • Security & Privacy • Expandability, …

7. Project Goals • 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 operations • Facilitating Payment • Providing a unique security and control in the country

8. Piloting Project Phases System Requirements Analysis System Design Procurement & Sub Contracting Construction & Testing Card Personalization & Distribution System Integration Implementation

9. General Characteristics • 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.

10. Data Collection & Police Data Center Network Infrastructure Training & Awareness Raising Software Security Gas Station LAN Planning Customer Support POS / Terminal Smart Card Components Fuel Smart Card System

11. Entities Banks & Banking Network Police Department Data Center Card Management Center Customer Support Centers 1402 2814 Gas Stations 226Oil Zones 37 Areas

12. Communications Mechanism Data Center Data from Pullers to Gas Stations Data from Gas Stations to Pullers Data from Pullers to Data Center Data from Data Center to Pullers Pullers Pullers Oil Zones Customer Support Centers Oil Storages Gas Stations Gas Stations

13. Process Flow Management (Data Center) Vehicle Providers Police Mailing System Card Production Center Customer Care Offices Customers (Card Holders)

14. Statistics • 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

15. Achievements • 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

18. 25 million liter of Import reduction Per day More than 13 B USD Saving

19. Lessons & Experiences • Managing large scale smart card projects • Paying high attention for training • Plan for change management • Keep the users much informed • Technology Independent Design • Divide and conquer is the best methodology for solving big problem

20. Sum Up • 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