By The Government of Pakistan has officially announced revised petroleum prices effective from December 16, 2025, following its routine fortnightly review, according to a notification reported by ARY News. While consumers were expecting a broad-based reduction in fuel prices, the government decided to keep petrol prices unchanged and provide major relief through a significant cut in high-speed diesel (HSD) rates.
According to the notification, petrol (motor spirit) will continue to be sold at Rs263.45 per litre, maintaining the price set during the previous review. In contrast, high-speed diesel prices have been reduced by Rs14 per litre, bringing the new diesel rate down to Rs265.65 per litre. This reduction is expected to provide relief to transporters, businesses, and industries that heavily rely on diesel-powered logistics.
Expectations vs Final Prices
Earlier reports had suggested that petroleum prices could drop by up to Rs11.85 per litre, based on initial calculations and trends in international oil markets. High-speed diesel was expected to see the largest decrease, potentially bringing its price to around Rs270.80 per litre. However, the final cut exceeded expectations, making diesel even cheaper than initially projected.
Similarly, kerosene oil and light diesel oil (LDO) were expected to see notable reductions. Sources had indicated that kerosene oil prices could fall by Rs11.70 per litre, while LDO prices were projected to decline by Rs10.10 per litre. Under those estimates, kerosene oil would have been priced at approximately Rs181.16 per litre, and LDO at Rs153.76 per litre.
Petrol, however, was expected to see only a minimal reduction of Rs0.36 per litre, which ultimately did not materialize in the final announcement.
Decision-Making Process
The Oil and Gas Regulatory Authority (OGRA) forwarded its final price recommendations to the Finance Ministry on December 15, after which the Petroleum Division, with approval from the Prime Minister, announced the new rates for the next fortnight.
In the previous review, the government had already reduced petrol prices by Rs2 per litre and high-speed diesel by Rs4.79 per litre, reflecting its ongoing effort to ease inflationary pressure on the public.
Outlook
Officials have stated that fuel prices will continue to be reviewed closely, especially as global oil markets remain volatile. While the unchanged petrol price may disappoint some motorists, the sharp diesel cut is likely to help control transportation costs and inflation in the coming weeks.
