This paper presents a fuel dispensing system based on RFID technology. The system can improve the fueling process in order to make it much easier, secure and reliable. It prevents unauthorized fueling by assigning a specified amount of fuel for registered vehicles, depending on their types, within a specific period of time so that each vehicle will get a sufficient amount of fuel. It also provides efficient statistics about the various quantities of fuel at the stations. The system was implemented at the Oil Products Distribution Company, The Distribution of Baghdad. It uses ELA816B RFID reader with its passive tags. It has a software application, built using VB.Net, for registration of customers, updating their accounts and charging them for the designated amount of fuel. The hardware part of this system consists of a microcontroller, card relay, LCD and other basic electronic components, and it is attached to conventional fuel dispensers in order to make them work under the RFID technology. The system uses a centralized database to allow fuel stations to share the same data about vehicles and related balance. Additional features of this system include a website and a phone application, which allow customers to login to their accounts.