The government has set aside Rs. 15 billion to fund a diesel subsidy in October, forming part of a broader three-month relief package designed to protect consumers from the effects of rising global fuel prices amid the continuing conflict in the Middle East.
The subsidy will cover both auto diesel and industrial diesel, with the government committing a total of Rs. 40.65 billion for the three-month stretch running from October through December.
Cabinet approval has been secured for a proposal put forward by the President to provide the funding required for this subsidy.
Breaking down the total allocation, Rs. 15 billion will be disbursed in October, followed by Rs. 13.5 billion in November and Rs. 12.15 billion in December.
According to the government, the initiative is designed to stop domestic fuel prices from climbing in tandem with international market increases, keeping fuel costs within reach for ordinary consumers.
Over the three-month period, the subsidy is expected to soften the blow of elevated global fuel prices on the public, while keeping domestic diesel prices at a manageable level.