Pakistan Extends Fuel Subsidy Until December as Programme Crosses Rs28 Billion

Prime Minister Shehbaz Sharif has announced that the government's fuel subsidy programme will remain in place until at least the end of December, as total spending on the initiative approaches Rs28 billion. The scheme is designed to shield consumers from sharp increases in domestic petrol prices driven by volatile international crude oil markets.

According to the government, the programme has directly benefited roughly 15 million people. When the family members of these direct recipients are included, the total number of beneficiaries is estimated at around 75 million, giving the subsidy a wide reach across the country.

The announcement comes at a time when rising international crude oil prices had threatened to push local fuel rates higher. Officials said the arrangement was intended to prevent a proposed increase of about Rs15 per litre in petrol prices from being passed on to consumers.

The Prime Minister credited Petroleum Minister Ali Pervaiz Malik, his team, the Oil and Gas Regulatory Authority (OGRA) and the relevant committee for engaging with refineries to share their windfall profits, a step that helped fund the relief measure.

While describing the subsidy programme as broadly transparent, the Prime Minister said intelligence agencies had identified irregularities at a number of petrol pumps. He directed the petroleum minister to shut down the outlets involved and to impose heavy financial penalties on those found responsible.

The extension offers short-term relief to motorists and businesses at a time when fuel costs remain a key driver of inflation and transport expenses. It also highlights the government's effort to balance consumer protection against the fiscal cost of maintaining subsidies amid uncertain global energy prices.