Islamabad: The federal government on Thursday announced a targeted fuel subsidy package for select sectors, shortly after implementing a sharp increase in petroleum prices driven by global market pressures.
Petroleum Minister Ali Pervaiz Malik, addressing a press conference alongside Finance Minister Muhammad Aurangzeb, confirmed that petrol prices had been raised by PKR 137.24 per litre to PKR 458.4, while high-speed diesel (HSD) saw an increase of PKR 184.49 per litre, reaching PKR 520.35 per litre. The revised prices came into effect from Friday.
In response to the steep hike, the government introduced a relief package aimed at cushioning the impact on vulnerable segments of society and key economic sectors.
Under the plan, a subsidy of PKR 100 per litre will be provided to two-wheeler users, capped at 20 litres per month, for a period of three months. The initiative is intended to support daily commuters who rely heavily on motorcycles.
The government also announced support for the agriculture sector, offering a one-time subsidy of PKR 1,500 per acre to small farmers, acknowledging the sector’s importance to food security and its significant contribution to the economy.
For the transport sector, which plays a critical role in the movement of goods and passengers, a PKR 100 per litre subsidy will be extended to HSD-operated inter-city and goods transport. In addition, financial assistance packages have been outlined, including PKR 70,000 for trucks carrying essential food items, PKR 80,000 per month for large transport vehicles, and PKR 100,000 per month for public service vehicles to help maintain stable fares.
The finance minister also indicated that subsidies would be extended to support low-income passengers using rail transport, though further details on implementation timelines were not disclosed.
The measures come as the government attempts to balance the impact of rising international oil prices with domestic economic stability, following one of the most significant fuel price increases in recent months.
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