Petrol price drops by Rs7.54 per litre in Pakistan from August 1, 2025; diesel increases by Rs1.48 per litre, as per latest update from Finance Division.
The federal government of Pakistan has reduced the petrol price by Rs7.54 per litre for the upcoming fortnight, effective from August 1, 2025. According to an official notification issued by the Finance Division, the revised petrol price now stands at Rs264.61 per litre. The new rates were determined following a comprehensive review of international oil market fluctuations and recommendations by the Oil and Gas Regulatory Authority (OGRA) and other relevant ministries. This adjustment comes as part of the government’s bi-weekly price mechanism for petroleum products.
Diesel Price Increased by Rs1.48 Per Litre for Next 15 Days
While the price of petrol saw a downward revision, the federal government increased the price of high-speed diesel by Rs1.48 per litre. With this change, the new price of diesel has been fixed at Rs285.83 per litre. Diesel is a key fuel used in commercial transportation, agriculture, and heavy industry, and changes in its pricing are often linked to broader inflationary trends. The latest price hike is expected to affect transportation costs and commodity prices across multiple sectors.
Petrol Price Drops by Rs7.54 Per Litre: New Rates Effective August 1, 2025
The updated petroleum prices, effective from August 1, are as follows:
- Petrol (Super): Reduced from Rs272.15 to Rs264.61 (decrease of Rs7.54)
- High-Speed Diesel (HSD): Increased from Rs284.35 to Rs285.83 (increase of Rs1.48)
- Light Diesel Oil (LDO): No change; remains at Rs155.81
- Kerosene Oil: No change; remains at Rs171.65
These rates will remain in effect until the next price revision scheduled for mid-August 2025. The Finance Division highlighted that the price revision was based solely on fluctuations in global petroleum prices and not influenced by any internal fiscal adjustments.
Impact on Consumers and Transport Sector
Petrol, commonly used in motorbikes, rickshaws, and small vehicles, is vital for daily commuting, particularly for middle- and lower-income groups. A decrease in petrol price can offer some relief to these segments by reducing their daily transportation expenses. In contrast, high-speed diesel is extensively used in trucks, buses, farm equipment, and rail transport. Therefore, any increase in diesel rates typically impacts the cost of transporting goods, leading to higher prices for agricultural produce and essential commodities.
Petroleum Price Trends Over Previous Fortnight
In the prior pricing cycle that started on July 15, 2025, the government had increased the petrol price by Rs5.36 per litre and diesel by Rs11.37 per litre. This sharp increase was attributed to the global oil price spike observed in early July. With the latest adjustment, the government has reversed the petrol hike but retained an upward revision in diesel, albeit at a lower rate.
LPG Prices Also Reduced for August 2025
The Oil and Gas Regulatory Authority (OGRA) has also announced a significant reduction in the price of Liquefied Petroleum Gas (LPG). Effective August 1, the per kilogram price of LPG has been reduced by Rs17.74, bringing it down to Rs215.36. Consequently, the price of an 11.8 kg domestic LPG cylinder has decreased by Rs209.24, from Rs2,750.60 to Rs2,541.36. This move follows global price trends and is aimed at alleviating household energy expenses for consumers who rely on LPG for cooking and heating purposes.
Comparison of Old and New Petroleum Product Prices
| Fuel Type | Old Price (PKR) | New Price (PKR) | Difference (PKR) |
|---|---|---|---|
| Petrol (Super) | 272.15 | 264.61 | -7.54 |
| High-Speed Diesel | 284.35 | 285.83 | +1.48 |
| Light Diesel Oil | 155.81 | 155.81 | 0.00 |
| Kerosene Oil | 171.65 | 171.65 | 0.00 |
International Oil Market Influence on Local Pricing
The fortnightly fuel pricing system in Pakistan is closely linked to global crude oil market trends. International crude prices, freight charges, and the rupee-dollar exchange rate are key determinants in domestic price settings. In the current cycle, a slight stabilization in crude prices, along with favorable exchange rate movements, contributed to the petrol price cut, while minor fluctuations in diesel supply costs led to a marginal increase in its rate.
Fiscal Policy and Fuel Price Adjustments
Fuel prices in Pakistan are revised every two weeks under the government’s pricing mechanism, which considers the global oil market’s performance and local currency trends. The Ministry of Finance, in consultation with OGRA and the Ministry of Energy (Petroleum Division), finalizes the changes. Petroleum Levy (PL) and General Sales Tax (GST) rates are also factored into the final consumer price but have remained unchanged in this cycle.
Economic Implications of Diesel Price Hike
An increase in high-speed diesel prices has a cascading effect on the national economy. Since diesel is used in goods transport and agricultural machinery, the price hike can increase logistics costs, which may translate into higher prices for vegetables, grains, and other essential commodities. While the increment this cycle is minimal, even marginal increases can have compounding inflationary effects if sustained over multiple fortnights.
Stability in Kerosene and Light Diesel Oil Prices
The government has opted not to change the prices of kerosene oil and light diesel oil in this review. Kerosene is used in remote areas where natural gas and LPG are not accessible. Light diesel oil, although not widely consumed for domestic purposes, is used in some industrial and commercial applications. Maintaining stable prices for these fuels helps protect rural and off-grid populations from fuel cost shocks.
Government Monitoring of Energy Prices
The government continues to monitor global energy trends closely and evaluates domestic price implications every two weeks. The aim is to strike a balance between passing on international price benefits to consumers and maintaining fiscal discipline through the petroleum levy. Officials indicated that future adjustments will depend on global crude price patterns and economic indicators, including inflation, exchange rate stability, and energy demand forecasts.
Public Notification and Implementation
The revised prices, effective August 1, were formally announced through a notification from the Ministry of Finance. These rates are implemented at all petroleum retail outlets nationwide, with oil marketing companies and dealers required to comply immediately. The Petroleum Division has also directed relevant authorities to ensure that prices are displayed prominently at fuel stations for consumer awareness and transparency.
Consumer Relief Measures and Subsidies
Although the current petrol price reduction provides temporary relief, the federal government has not announced any direct fuel subsidy mechanism. Instead, targeted relief programs such as the Benazir Income Support Programme (BISP) and Ehsaas fuel cards are under review for future implementation, particularly for vulnerable segments of the population who are most affected by volatile energy prices.
Fuel Price Forecast for Mid-August 2025
Analysts predict that global oil markets may remain volatile due to geopolitical factors and seasonal demand fluctuations. If international crude oil prices continue their downward trend, the next fuel price revision scheduled for August 15 could bring further relief in petrol and diesel prices. However, a sudden spike in demand or currency depreciation could reverse the trend, emphasizing the importance of continuous monitoring.
Conclusion: Petrol Price Drops by Rs7.54 Per Litre
The latest revision in fuel prices — a Rs7.54 per litre reduction in petrol and Rs1.48 increase in diesel — reflects Pakistan’s adherence to international pricing benchmarks. While petrol consumers are expected to benefit from this change, the diesel price hike poses economic challenges for transport and agriculture sectors. The government’s continued price adjustments based on global trends aim to ensure energy affordability while maintaining fiscal responsibility. Stakeholders across all sectors are advised to plan accordingly in light of these developments.
