Petrol Price in Pakistan Reduced to Rs264.61 per Litre
The reduction in petrol price is a result of the decrease in global oil prices and reduced import premiums, with the ex-depot price of petrol estimated to decline by around Rs9 per litre, while high-speed diesel may see a reduction of Rs3.50 per litre. The government's decision to reduce the petrol price is expected to have a positive impact on the economy and provide relief to consumers.
The federal government has announced a reduction in the price of petrol by nearly Rs8 per litre, bringing the new price to Rs264.61 per litre, while the price of high-speed diesel has been increased by Rs1.48 per litre to Rs285.83 per litre, effective from August 1, 2025.
The decrease in petrol price is attributed to the global premium on petrol decreasing by $2.92 per bbl, and the government has enough space to reduce the price of petrol by Rs9.07 per litre and high-speed diesel by Rs3.73 per litre. However, the prices of kerosene oil and light diesel oil (LDO) are expected to rise by Rs3.55 per litre and Rs2.33 per litre, respectively.
The Oil and Gas Regulatory Authority (OGRA) has also reduced the price of Liquefied Petroleum Gas (LPG) by Rs17.74 per kilogram, bringing relief to domestic consumers. The government is currently collecting about Rs98 per litre on both petrol and diesel through various levies, including petroleum levy and climate support levy.
Despite the anticipated cut, transport fares rarely come down in response to fuel price drops. The government collected Rs1.161tr through petroleum levy in 2024-25 and projects a 27pc increase in the current fiscal year. The reduction in petrol price is expected to provide relief to consumers, but the increase in high-speed diesel price may affect the transportation sector.