ISLAMABAD: Pakistan is poised to reduce the prices of all major petroleum products by up to Rs6.30 per litre starting Sunday, following slight declines in global oil prices.
The revised rates will remain in effect for the first half of December, ending on the 15th.
According to official sources, the ex-depot price of high-speed diesel (HSD) is projected to fall by approximately Rs3.70 per litre—around 1.4%. Petrol prices may drop by Rs4.30 per litre, or about 1.5%.
Since June 1, 2025, petrol and diesel prices in Pakistan have risen by roughly Rs12.50 and Rs29 per litre, respectively.
Modest reductions are also expected for other fuels. Kerosene may become cheaper by Re1 per litre (0.3%), while light diesel oil (LDO) could see a significant cut of Rs6.35 per litre (3.7%). Currently, kerosene is priced at Rs194.34 per litre and LDO at Rs170.80.
With the adjustments, the ex-depot petrol price is expected to decline from Rs265.45 to Rs261.75 per litre. Petrol remains the primary fuel for private vehicles, motorbikes, rickshaws, and small cars—meaning even small price movements directly affect household budgets, especially for middle- and lower-income groups.
High-speed diesel, widely used in public transport, freight movement, agriculture, and railways, currently sells at Rs284.44 per litre and is expected to drop to nearly Rs280.
Diesel prices are closely linked to inflation, as they influence the cost of transporting food and essential goods. Despite a previous Rs9 per litre cut, transporters have not reversed fare hikes of up to Rs27 per litre implemented between May and August.
The government presently collects around Rs100 per litre in taxes on petrol and about Rs96 on diesel. While the General Sales Tax (GST) remains at zero, the petroleum development levy and climate support levy account for Rs78 per litre on diesel and Rs82 per litre on petrol and high-octane fuels, including Rs2.50 under the climate support levy.
Customs duties add another Rs16–17 per litre on both petrol and diesel, regardless of whether the products are imported or refined locally. Distribution and dealer margins account for an additional Rs17 per litre.
Petrol and diesel continue to be the government’s most significant revenue generators, with monthly sales between 700,000 and 800,000 tonnes—far exceeding the roughly 10,000 tonnes of monthly kerosene demand.
In the last fiscal year (FY25), the government collected Rs1.161 trillion through the petroleum levy and projects this figure to increase by 27% to Rs1.470 trillion in the current year.
