Cabinet has approved a three-month diesel-price relief programme with a maximum allocation of Rs.40.65 billion for October through December 2026.

The programme applies to Auto Diesel and Industrial Diesel.

The approved maximum allocations are:

  • Rs.15 billion for October;
  • Rs.13.5 billion for November; and
  • Rs.12.15 billion for December.

Together, the three monthly ceilings amount to Rs.40.65 billion.

The programme is intended to limit the extent to which increases in international fuel prices are passed through to domestic diesel prices.

The Rs.40.65 billion figure is therefore a maximum approved allocation, not necessarily the final amount that will ultimately be spent.

The measure should also not be described as a subsidy covering every fuel product. The Cabinet decision specifically concerns Auto Diesel and Industrial Diesel.

This final Cabinet decision supersedes the earlier approximately Rs.41 billion proposal identified during the morning desk.