Officials say the gap between current local prices and actual international costs has widened significantly. Petrol is estimated to be around Rs100 per liter cheaper than global rates, while diesel is more than Rs200 per liter below the actual cost.

A high-level meeting was held under Finance Minister Muhammad Aurangzeb, attended by all four chief ministers and senior officials, to review the situation. The final decision will depend on updated calculations from the relevant authorities.

Sources say the government is considering passing the full impact of global prices on to consumers. However, no final announcement has been made yet.

The government has already spent around Rs129 billion on fuel subsidies in the past three weeks. It now plans to limit the total subsidy to Rs158 billion to control financial pressure.

To manage the burden, provinces have been asked to share the cost. Punjab and Sindh will contribute based on population, while Khyber Pakhtunkhwa and Balochistan will share costs according to fuel consumption.

Officials have also agreed to provide targeted relief to certain groups. Motorcyclists and rickshaw users are expected to receive subsidized fuel under a national plan.

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Sindh will support farmers through its Hari Card system, while Punjab and Khyber Pakhtunkhwa are likely to introduce similar models to assist small farmers.

The weekly subsidy requirement is currently estimated at Rs15 billion to Rs18 billion and could rise to Rs30 billion if fuel prices continue to increase.

Authorities have also decided not to increase BRT fares for now. However, concerns remain about the impact on people living outside major cities.

The expected price hike has raised concerns among citizens already struggling with inflation. Many fear that further increases will make daily expenses even harder to manage.