Diesel Price Reduced by Rs 12.84 Per Litre in Pakistan. Check latest fuel rates, petrol price update, and government notification effective August 16, 2025.
The federal government of Pakistan has announced a significant reduction in the price of high-speed diesel (HSD), cutting the rate by Rs12.84 per litre for the upcoming fortnight. According to the official notification issued by the Ministry of Finance, the new fuel prices have been set following recommendations from the Oil and Gas Regulatory Authority (OGRA) and will take effect from August 16, 2025. The notification stated: “The government has decided to revise the petroleum product prices for the fortnight commencing August 16, 2025, in line with the recommendations of OGRA and the concerned ministries.” With this revision, the diesel price in Pakistan has dropped from Rs285.83 per litre to Rs272.99 per litre, providing relief particularly to sectors that depend heavily on diesel consumption, such as goods transport, agriculture, and public transport.
Latest Fuel Price Update in Pakistan
The updated petroleum prices effective from August 16, 2025, are as follows:
| Products | Existing Price (w.e.f Aug 1, 2025) | New Price (w.e.f Aug 16, 2025) | Increase/Decrease |
|---|---|---|---|
| High-Speed Diesel (HSD) | Rs285.83 | Rs272.99 | – Rs12.84 |
| Petrol (MS) | Rs264.61 | Rs264.61 | No Change |
| Superior Kerosene Oil (SKO) | Rs185.46 | Rs178.27 | – Rs7.19 |
| Light Diesel Oil (LDO) | Rs170.36 | Rs162.37 | – Rs8.20 |
| . |
The petrol price in Pakistan will remain unchanged at Rs264.61 per litre, while the prices of kerosene oil and light diesel oil have also been revised downward by Rs7.19 and Rs8.20 per litre respectively. This latest fuel price update in Pakistan comes as part of the government’s fortnightly review, which takes into account international oil market trends, global crude price fluctuations, and the local exchange rate movement
Diesel Prie Reduction: A Relief for Transport and Agriculture
The reduction in the diesel price today in Pakistan is particularly significant given its widespread use in heavy goods transport vehicles, public transport buses, trains, and agricultural machinery such as tractors, tube wells, and threshers. Since high-speed diesel is a critical input for the agriculture and logistics sectors, its price reduction is expected to have a direct impact on transportation costs and may help stabilize the prices of essential commodities such as vegetables, fruits, and grains in the local markets. Historically, increases in diesel prices have been linked to inflationary trends in Pakistan because transporters typically pass on the higher fuel costs to consumers. With this diesel price cut of Rs12.84 per litre, analysts expect some temporary relief in logistics and supply chain expenses.
Petrol Price Remains Unchanged_Diesel Price Reduced by Rs 12.84 Per Litre in Pakistan
In contrast to diesel, the petrol price today in Pakistan remains at Rs264.61 per litre. Petrol is the most widely used fuel for private vehicles, motorcycles, rickshaws, and smaller cars, which means the middle and lower-middle classes remain unaffected by this fortnight’s revision. Petrol prices directly influence the commuting expenses of daily wage earners, office-goers, and small transport operators. While the unchanged rate does not offer immediate relief, it does prevent an additional financial burden on the majority of households that depend on petrol for daily mobility.
Kerosene and Light Diesel Oil Price Adjustments
The government has also announced reductions in kerosene oil and light diesel oil (LDO) prices: Kerosene oil has been reduced from Rs185.46 to Rs178.27 per litre (a decrease of Rs7.19). Light diesel oil has been revised from Rs170.36 to Rs162.37 per litre (a decrease of Rs8.20). Kerosene oil is primarily used in rural areas of Pakistan for cooking and heating purposes, while light diesel oil is used in certain industries and small machinery. The price reduction in these fuels may provide targeted relief to rural communities and small-scale businesses.
Impact of Diesel Price Reduction on Transport Fares
The impact of diesel price reduction on transport fares is expected to be notable, as the majority of intercity buses, long-route coaches, and freight transport vehicles operate on diesel. Lower fuel costs should ideally translate into reduced fares or at least prevent further increases in ticket prices. Similarly, in the agriculture sector, the reduction in diesel price trend Pakistan 2025 will reduce the operating costs of tractors and tube wells, potentially lowering input costs for farmers. This could have a stabilizing effect on food inflation, especially at a time when commodity prices are highly sensitive to global and domestic economic pressures.
Why Diesel Price Dropped in Pakistan – August 2025
According to energy sector experts, the reason why diesel price dropped in Pakistan August 2025 is linked to: (1) Decline in international crude oil prices over the past few weeks, (2) Stable exchange rate that minimized the impact of imported fuel costs, (3) Government adjustment mechanism, which passes on part of the global benefit to local consumers. The government reviews petroleum prices twice a month based on OGRA’s summary, which considers both international oil prices and the rupee-dollar parity.
Diesel vs Petrol Price in Pakistan – Market Dynamics
While both diesel and petrol prices in Pakistan are influenced by global crude oil rates, their consumption patterns differ: Petrol demand is higher in urban centers for private commuting, while diesel demand is concentrated in commercial transport, agriculture, and heavy industries. This is why the diesel price cut Rs12.84 is seen as a relief for the commercial and agriculture sectors, while the unchanged petrol price continues to keep commuting costs stable for households.
Diesel Price Latest Government Update
This diesel price latest government update highlights the authorities’ attempt to balance consumer relief with fiscal responsibility. Fuel pricing in Pakistan is also linked to taxation, as petroleum levy and GST contribute significantly to government revenue. Any adjustment in petroleum prices therefore carries dual effects: Relief for consumers and industries, and impact on government revenue collection targets.
Broader Economic Implications
The fuel price changes are not only relevant for consumers but also carry macroeconomic implications: (1) Inflation: Reduced diesel prices could ease cost-push inflation in the transport and agriculture sectors. (2) Trade balance: Lower global oil prices improve Pakistan’s import bill, easing pressure on foreign exchange reserves. (3) Energy sector: The adjustment mechanism reflects the country’s dependence on imported petroleum, highlighting the need for diversification of energy sources.
Diesel Price Trend Pakistan 2025 – Outlook
Market experts suggest that the diesel price trend Pakistan 2025 will largely depend on: (1) Global oil market fluctuations, particularly supply cuts by OPEC+. (2) Geopolitical developments affecting crude oil supply routes. (3) The performance of the Pakistani rupee against the US dollar. If international oil prices remain stable and the exchange rate does not deteriorate, there is potential for further adjustments in domestic fuel prices in the coming months.
Conclusion – Diesel Price Reduced by Rs 12.84 Per Litre in Pakistan
The government’s decision to reduce the diesel price in Pakistan by Rs12.84 per litre while keeping the petrol price unchanged provides targeted relief to sectors most reliant on diesel consumption, particularly transport and agriculture. The reductions in kerosene oil and light diesel oil also extend benefits to rural households and industries. This fuel price update Pakistan reflects the ongoing efforts to adjust domestic rates in line with international market movements and local economic conditions. While immediate relief has been provided, the diesel price trend in Pakistan 2025 will remain closely tied to global crude prices and currency stability.
