The government of Pakistan is seeking a provincial share in a targeted fuel subsidy, amid rising prices that have hit several million households hard.

A recent surge in petrol and diesel prices has increased the average price of gasoline by around 15% since January this year, affecting low-income families who rely heavily on these fuels for their daily lives.

The National Assembly’s Standing Committee on Petroleum Division has been briefed on the matter, with officials stating that a significant portion of the subsidy will be allocated to provinces like Punjab and Sindh, which bear a higher burden due to higher population densities.

Provincial representatives have emphasized the need for fair allocation, as lower-priced provinces could potentially be flooded by people seeking cheaper fuel from neighboring states, thereby offsetting the financial benefits of the targeted subsidy.

With prices expected to remain volatile in the coming months, the government aims to implement a more equitable distribution of the subsidy, one that will help ease the burden on families across the country while also protecting against external market fluctuations.