Pakistan Shifts to Targeted Subsidies as Fuel Prices Hit Record Rs 458.
Pakistan targeted fuel subsidy 2026
The Government of Pakistan has announced a shift toward Targeted Subsidies to mitigate the impact of record-breaking fuel price hikes. While fuel rates have reached historic levels, the new “Fiscal Shield” program is specifically designed to protect low-income citizens, small farmers, and the transport sector.
New Fuel Rates & Relief Measures
- Record Prices: Petrol has been set at Rs 458.40 per litre, while Diesel has reached Rs 520.35 per litre.
- Bikers’ Relief: Motorcyclists are eligible for a Rs 100 discount per litre (capped at 20L per month) for the next three months.
- Agricultural Support: Small farmers will receive special grants of Rs 1,500 per acre to offset rising production costs.
- Transport Subsidies: Massive subsidies have been allocated for buses and trucks to prevent a surge in general transport and logistics costs.
- Funding the Shield: The government has saved Rs 129 Billion through internal austerity measures to fund this relief program.
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