By Motorists across Pakistan are finally in for some much-needed relief. The prices of petrol and diesel are expected to decrease in the upcoming fortnight ending August 15, 2025, marking a significant shift after several consecutive hikes.
According to insider sources, petrol prices may drop by Rs. 9 per litre, translating to a 3.3% reduction, while high-speed diesel (HSD) could see a decrease of Rs. 3.50 per litre, or 1.3%. These provisional figures are based on current import and market trends.
Key Factors Behind the Price Drop
- Softening Global Oil Prices:
International crude oil prices have slightly eased over the past two weeks, directly impacting domestic pricing. - Lower Import Premiums:
The premium on imported petrol has dropped significantly from $9.70 to $6.75 per barrel, thanks in part to reduced regional tensions.
This is especially welcome news for consumers who have been burdened by fuel price increases since mid-May. In that period, petrol had risen by Rs. 20 per litre, while HSD spiked by nearly Rs. 28 per litre.
Not All Fuel Types Are Seeing Relief
While petrol and diesel may be cheaper, prices for kerosene and light diesel oil (LDO) are expected to increase by Rs. 3.50 and Rs. 2.25 per litre, respectively.
Despite the dip in prices, fuel remains a major source of government revenue. Although GST on petroleum products remains at zero, the government continues to collect approximately Rs. 98 per litre on both petrol and diesel through various levies.
Breakdown of Fuel-Related Charges
- Petroleum and Climate Support Levies:
- Rs. 77.01/litre on diesel
- Rs. 78.02/litre on petrol and HOBC
- Rs. 2.25/litre allocated for Climate Support Levy (CSL)
- Customs Duty:
- Rs. 20–21 per litre on both imported and locally refined fuel
- Distribution and Dealer Margins:
- Add approximately Rs. 17 per litre
With combined sales of 700,000–800,000 tonnes of petrol and HSD each month, fuel taxation is a key government income stream. In FY 2024–25, the government collected Rs. 1.161 trillion through petroleum levies. This year, it expects that number to rise by 27% to Rs. 1.470 trillion.
The anticipated petrol and diesel price drop in Pakistan is a timely development for commuters and businesses alike. While rising prices of kerosene and LDO temper the overall good news, the easing of international pressures offers hope for more stability ahead.
