The federal government has requested financial support from provincial governments to implement a targeted fuel subsidy aimed at easing the burden of rising oil prices on everyday commuters, officials in the Ministry of Finance said.

Provinces have been asked to allocate Rs154 billion to the scheme, which would specifically cover two- and three-wheeled vehicles. Sources said the subsidy could provide up to 20 liters for motorcycles and 30 liters for auto-rickshaws, helping low-income users manage costs without passing the full price hike onto consumers.

The government is weighing two options: either let international oil price increases reflect directly in consumer prices, or provide the targeted subsidy for smaller vehicles. Officials estimate the six-week program would cost around Rs300 billion.

A final decision is expected after a high-level meeting of the President, Prime Minister, and provincial Chief Ministers, likely before next week. Meanwhile, the country’s current fuel reserves are sufficient to meet domestic needs until May 10, 2026.