Islamabad — The government of Pakistan is set to raise petrol and diesel prices within days, as officials move to pass rising import costs onto consumers while restructuring subsidies. The decision emerged after Finance Minister Muhammad Aurangzeb chaired a high-level meeting with provincial leaders to coordinate a targeted relief strategy.
Officials indicated that authorities may transfer the full petrol cost increase and a partial diesel adjustment to consumers. However, they continue to finalize exact figures based on global oil price movements and updated assessments by relevant regulatory bodies.
Targeted Relief Planned for Vulnerable Groups
Meanwhile, the government aims to shield low-income groups from the full impact of rising fuel costs. Provincial administrations have agreed in principle to subsidize petrol for motorcyclists through a uniform rationing mechanism expected soon. In addition, Sindh will extend diesel subsidies to farmers using its Hari Card database, while Punjab and Khyber Pakhtunkhwa are preparing similar initiatives.
Furthermore, policymakers emphasized that transport costs remain a critical concern. Diesel price increases could quickly translate into higher food prices through elevated freight charges. To contain inflation, provinces have agreed not to raise Bus Rapid Transit fares, although disparities may emerge in other transport sectors.
Fiscal Pressure Forces Shared Responsibility
The federal government has already absorbed approximately Rs. 129 billion in subsidies over the past three weeks. However, it now plans to cap support at Rs. 158 billion, prompting provinces to share the financial burden. Punjab and Sindh will contribute based on population, while Khyber Pakhtunkhwa and Balochistan will participate according to fuel consumption.
Looking ahead, officials estimate weekly subsidy costs between Rs. 15 billion and Rs. 30 billion. Consequently, authorities are developing a coordinated framework to balance fiscal constraints with inflation control amid volatile global energy markets.
