Petrol prices in Pakistan are likely to see another rise from September 16, 2025. The expected revision comes after the oil industry proposed a temporary increase for 15 days. This adjustment will cover petrol, high-speed diesel, kerosene, and light diesel.
The development is significant as fuel costs directly affect transport, agriculture, industry, and everyday household budgets. With global oil prices fluctuating and exchange rate pressures mounting, Pakistan continues to face challenges in stabilizing its energy sector.
Proposed Petroleum Price Hike
Industry insiders have suggested the following adjustments in retail prices:
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Petrol: Increase of Rs 1.54 per liter
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High-Speed Diesel (HSD): Increase of Rs 4.79 per liter
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Kerosene: Increase of Rs 3.60 per liter
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Light Diesel: Increase of Rs 3.68 per liter
These recommendations are based on a 15-day price review mechanism. It is important to note that the calculations exclude government taxes and foreign exchange losses. Therefore, the final rates may differ once official decisions are made.
Approval Process
The process for revising petroleum prices in Pakistan involves several steps. First, the Oil and Gas Regulatory Authority (OGRA) prepares a summary with suggested adjustments. That summary is then submitted to the federal government.
The Prime Minister will give the final approval after reviewing OGRA’s proposal. Once the decision is made, the Ministry of Finance issues a notification to implement the new prices nationwide. This notification will take effect on September 16, 2025.
Current Petroleum Prices
As of September 1, 2025, the prevailing retail prices of fuel in Pakistan are:
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Super Petrol: Rs 264.61 per liter
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High-Speed Diesel: Rs 269.99 per liter
These rates have already strained the budgets of many citizens. Any further increase will likely push transport fares higher. Additionally, it will raise costs for businesses that rely heavily on fuel.
Impact of a Petrol Price Hike
Fuel prices play a critical role in Pakistan’s economy. A rise in petrol and diesel rates can trigger a chain reaction. Transporters may increase fares, which directly affects commuters. Similarly, goods transport becomes more expensive, leading to higher prices of essential commodities in markets.
Kerosene and light diesel are widely used in rural areas. Their price hikes will hit lower-income groups the hardest. Farmers, in particular, rely on diesel to power tractors, water pumps, and other machinery. Therefore, increased fuel prices directly impact agricultural productivity and food supply.
Global and Domestic Factors
The global oil market remains volatile. Crude oil prices fluctuate due to geopolitical tensions, production cuts by major suppliers, and seasonal demand shifts. Pakistan, being an oil-importing country, faces the consequences of these global changes.
Additionally, currency exchange rates have worsened the situation. The depreciation of the Pakistani rupee increases the cost of importing petroleum products. As a result, even a minor increase in global prices leads to a larger domestic burden.
Possible Government Measures
To cushion the impact on the public, the government sometimes adjusts petroleum levies and general sales tax. By reducing these taxes, the authorities can keep fuel prices stable. However, this decision often affects revenue collection, which the government uses for development and debt servicing.
Experts suggest that instead of relying on short-term tax cuts, Pakistan must adopt long-term solutions. Expanding renewable energy, improving refinery capacity, and reducing dependence on imports could help stabilize fuel costs in the future.
What Motorists Should Expect
If the proposed hike is approved, motorists will face higher expenses from mid-September. Those using private vehicles will see a direct increase in daily commuting costs. Public transport fares may also rise, making travel more expensive for millions of passengers.
For businesses, logistics and transportation expenses will increase. This can lead to price hikes in consumer goods, from food to construction materials. Rural communities depending on kerosene and light diesel will also struggle with rising household and farming costs.
The expected increase in petrol and diesel prices from September 16, 2025, highlights Pakistan’s ongoing struggle with energy costs. While the final approval rests with the Prime Minister, citizens are bracing for another round of inflationary pressure.
This situation emphasizes the urgent need for sustainable energy policies. Unless structural reforms are introduced, frequent fuel price hikes will continue to affect economic stability and household budgets.
