Petrol prices in Pakistan are expected to see a modest decline starting September 1, 2025, with estimates indicating a reduction of up to Rs3.13 per litre for high-speed diesel. According to sources, petrol itself may experience a smaller decrease of 61 paisas per litre, while kerosene oil and light diesel are also likely to become more affordable, with projected reductions of Rs1.57 per litre and Rs2.61 per litre respectively.
These adjustments come after preliminary calculations on petroleum product pricing were prepared and will be submitted to the Petroleum Division by the Oil and Gas Regulatory Authority (OGRA) on August 31, 2025. Following OGRA’s submission, the Prime Minister’s approval will finalize the new rates, making the price adjustments effective from the start of September.
Earlier, on August 16, 2025, the federal government had announced new petrol and diesel prices for the fortnight. According to the Ministry of Finance, petrol remained unchanged at Rs264.61 per litre, while high-speed diesel was reduced by Rs12.84, bringing its price down to Rs272.99 per litre.
Kerosene oil saw a reduction of Rs7.19 per litre, reaching Rs178.27, and light diesel decreased by Rs8.20 per litre to Rs162.37. Despite these reductions, consumers were not provided full relief due to a simultaneous increase in petroleum levies.
The government raised the levy on petrol and diesel by Rs2.50 per litre, with the diesel levy climbing from Rs74.51 to Rs77.01 per litre and petrol from Rs75.52 to Rs78.02 per litre. In addition, the freight margin on diesel was increased by Rs0.20, reaching Rs6.24 per litre, while a climate support levy of Rs2.50 per litre was imposed on both petrol and diesel.
Dealers’ margins for both fuels have been set at Rs8.64 per litre, while distributors’ margins are fixed at Rs7.87 per litre. Notably, the sales tax on petrol and diesel remains at zero, ensuring that the price adjustments are largely reflective of market conditions and regulatory decisions.
If approved, the upcoming reductions will offer partial relief to consumers amid fluctuating international oil prices and rising domestic fuel costs. The government continues to balance the need for affordable energy with fiscal measures, such as levies and climate support charges, highlighting the ongoing challenges in managing fuel pricing in Pakistan.
With these new adjustments, motorists and transport operators across the country can anticipate slightly lower fuel costs starting from September 1, 2025, providing temporary respite in a period of high inflation and economic pressures.
