The government is considering extending its targeted fuel subsidy program to 50 lakh more citizens and including diesel in the scheme, potentially making fuel Rs. 30 to Rs. 40 per litre cheaper for eligible consumers, sources told RBN.

The proposal emerged during talks between Prime Minister Shehbaz Sharif and Jamaat-e-Islami chief Hafiz Naeem ur Rehman at the Prime Minister’s House. The government is considering expanding targeted relief instead of introducing a blanket fuel subsidy.

Sources said the government is willing to increase the number of beneficiaries and include older models of motorcycles and vehicles in the program to extend relief to more people.

Jamaat-e-Islami has pressed for diesel to be included, arguing that farmers and other key sectors depend heavily on the fuel. The party said excluding diesel from the subsidy program increases costs for agriculture and the wider economy.

The government has indicated that diesel could also be included in the targeted subsidy scheme, sources said.

The two sides remain divided over the form of fuel relief. The government maintains that targeted subsidies are necessary to meet the requirements of the International Monetary Fund (IMF) program, warning that a blanket subsidy could put the program at risk while also benefiting wealthier consumers.

Sources said the government has already reduced the price of locally produced diesel by Rs. 32 per litre by delinking it from international prices following negotiations with Jamaat-e-Islami.

Technical committees from both sides are expected to continue discussions on the proposed framework. The final decision on the number of beneficiaries, eligibility criteria and subsidy amounts will depend on the outcome of these talks.