- Pakistan is expected to see another reduction in petroleum prices starting Sunday, offering some relief to consumers already facing rising living costs. The anticipated adjustment will remain in effect until December 15, based on current pricing trends in the global market.
Moderate Cuts Expected in Petrol and Diesel Rates
According to industry assessments, the ex-depot price of high-speed diesel may decrease by nearly Rs3.70 per litre. This reduction equals about 1.4 percent. Petrol prices are also projected to decline by roughly Rs4.30 per litre, or about 1.5 percent, depending on the final calculations.
Although this reduction brings some comfort, petrol and diesel rates have still climbed sharply since June 1, 2025. Petrol rose by around Rs12.50 per litre during this period, while diesel surged by nearly Rs29 per litre.
Kerosene and Light Diesel Oil May Also Become Cheaper
Other fuels are also projected to see slight downward adjustments. Kerosene may drop by Re1 per litre, while light diesel oil could fall by about Rs6.35 per litre. Their current prices stand at Rs194.34 and Rs170.80 per litre, respectively.
New Estimated Prices for Petrol and Diesel
The ex-depot petrol price currently stands at Rs265.45 per litre. After the expected revision, it may fall to around Rs261.75. Petrol remains essential for small vehicles, motorcycles, and rickshaws. Therefore, any reduction brings direct relief to middle-income and lower-middle-income households.
High-speed diesel, priced at Rs284.44 per litre, may decline to roughly Rs280. Diesel plays a central role in the transport and agriculture sectors. Because heavy vehicles, tractors, and tube wells depend on diesel, the fuel directly influences the prices of food and essential goods.
Transport Fares Have Not Adjusted Despite Earlier Cuts
Transporters had raised fares between May and August by nearly Rs27 per litre due to rising diesel costs. However, despite a previous Rs9 per litre reduction, these fare hikes remain unchanged. The continued burden adds pressure on everyday commuters and traders.
Breakdown of Taxes and Levies on Fuel
Although sales tax on petroleum products remains at zero, fuel prices still include several substantial charges. The government collects about Rs82 per litre on petrol and Rs78 per litre on diesel through various levies. These charges include the petroleum development levy and the climate support levy, which adds Rs2.50 per litre.
Additionally, customs duty of around Rs16 to Rs17 per litre applies to both petrol and diesel, regardless of their origin. Combined distribution and dealer margins add another Rs17 per litre.
Petrol and Diesel Remain the Major Revenue Contributors
Petrol and diesel continue to generate the highest revenue due to their significant consumption. Monthly sales of these fuels range between 700,000 and 800,000 tonnes. Meanwhile, kerosene demand remains much lower, at roughly 10,000 tonnes per month.
Government Revenue From Fuel Set to Increase
The government collected about Rs1.161 trillion in petroleum levies during the previous fiscal year. It now aims to increase this amount by nearly 27 percent, targeting approximately Rs1.470 trillion in the current year.
