Changing those subsidies to income tranfers of money would be cost neutral and strictly better or equal for everyone and save on emissions.
I agree that they should be made progressive and thus reduced immediately and phased out as soon as possible, but it's just not feasible the remove them completely immediately.
Also, you completely glossed over the rest of the comment, which complicates things even more.
Re bank accounts and embezzling, these are no worse problems, subsidized fuel is also vulnerable to smuggling abroad and other kinds of corruption and systems of exchange other than gasoline are well known technology in history of human societies, however attractive the mad max model is...
My point wasn't just embezzling, it was just distribution. A large section of your population might just not have a bank account.
Also, it's way harder to embezzled fuel that money, and I'm baffled that you'd think some kind of government official could steal an appreciably high volume of fuel to be worth enough for the risk without involving a large number of accomplices and thus exponentially more risk. It's really incomparable.