Petrol and diesel prices are expected to reduce slightly from Sep 1, 2025 in Pakistan after which international oil reference prices will reduce and rupee will get stronger against dollar.
Finance Minister will consider the working papers containing the recommendations submitted by Oil and Gas Regulatory Authority (OGRA). Finance minister has yet to announce the final decision.
Expected New Prices:
According to industrial sources, per litre prices are expected to reduce as:
Petrol: 61 paisa (Recent price: Rs. 264.61; New prices Rs. 264.00)
Diesel: 3.13 rupees (Recent price: Rs. 272.99; New prices Rs. 269.86)
Kerosene: 1.78 rupees (New prices Rs. 176.70)
Light Diesel Oil (LDO): 2.61 rupees (New prices Rs. 159.55)
According to these details, there will be reduction of 0.2% in petrol, 1.1% in diesal, 0.9% in Kerosene and 1.6% in LDO.
The main reasons of price reduction are reduction in international oil prices, refining margin (Petrol $6,37; Diesel $3.20) and import premiums. Inland Freight Equalization Margin (IFEM), which is Rs. 8.05 on petrol and Rs. 6.20 on Diesel; Petroleum Levy (PL) and Climate Support Levy (CSL) are also effecting local prices.
However, this estimate does not include exchange adjustment. If rupee decreases against dollar, then prices may not decrease, but if rupee strengthen against dollar then the chances of price reduction are high.
Since last 13 daysoil prices in internation prices are increasing in which burnt cradle increased $1.60 and American cradle increased $1.64. This continuous increase has increased the pressure on local prices, but the reduction seen in recent days has increased the chances of price reduction.
This slight reduction has appeared when the country is facing severe floods. However, more tha Rs. 80 tax and levis on petroleum products will not have any impact on flood effected homes and businesses.
Also read: Pakistan cuts diesel price by Rs12.84, keeps petrol unchanged
