Govt hits the brakes on fuel prices, cuts Rs8 a litre
The government on Thursday slashed the price of petrol by Rs7.54 per litre while raising that of high-speed diesel (HSD) by Rs1.48 per litre for the next fortnight.
The HSD price increase will come into effect from August 1, 2025. However, it has reduced the price of petrol for the next fortnight that will remain effective till August 15.
The finance ministry in a statement said that the Government of Pakistan's Finance Division has announced new petroleum product prices that will be effective from August 1, 2025.
It said that the price changes were determined after reviewing international market trends and considering recommendations from Oil and Gas Regulatory Authority (OGRA) and other relevant ministries.
According to statement, the price of HSD has witnessed an increase of Rs1.48 per litre, bringing the new price to Rs285.83. The existing price was Rs284.35 per liter.
The government has decreased the price of petrol by Rs7.54 per litre. The petrol will be available now at the new price of Rs264.61 per litre. The previous price was Rs272.15 per litre. These revised prices will be in effect for the next fortnight.
Earlier, consumers had witnessed a massive increase in the prices of petroleum products as government had increased the price of HSD by Rs10.39 per litre effective from July 1, 2025.
The high speed diesel is widely used in the agriculture and transport sectors. Therefore, fresh increase in its price will bring inflationary impact for the consumers.
The farmers use this fuel for tractors whereas transport sector also use it. Therefore, the cost of transport goods would go up, resulting in higher inflation across the country.
The government has also raised the price of petrol by Rs8.36 per litre from July 1.
Petrol is used in motorbikes and cars and is considered to be an alternate of the compressed natural gas (CNG).
The gas utilities had stopped supply of indigenous gas to the CNG stations especially in Punjab province and therefore, these CNG outlets had been using imported gas over a decade.
The recent reduction in price of petrol is a big relief for the motorbikes and cars.
Pakistan is a net importer of oil and import around 85 per cent of total petroleum products to meet the domestic needs. The local oil and gas exploration companies produce crude oil to meet 15 per cent of the total oil needs.
Therefore, the fluctuation in global oil prices also impact the domestic oil prices.
The consumers are also paying higher tax in form of petroleum levy on the petroleum products.They are paying over Rs77 per litre petroleum levy on diesel and petrol.
LPG Prices
The Oil and Gas Regulatory Authority (OGRA) has also significantly reduced the price of Liquefied Petroleum Gas (LPG) for the month of August 2025 to provide relief to consumers amid ongoing inflationary pressures.
According to the latest notification issued by the Authority, the regulator has set a new consumer price of LPG at Rs2,541.36 for an 11.8 kg domestic cylinder effective from August 1, 2025 with a reduction of Rs209.24 or 7.6 per cent compared to July's rate of Rs2,750.60.
The producer LPG price has also been reduced from Rs191,802.01 per ton in July to Rs174,069.26 per ton in August, reflecting a similar decrease of Rs17,732.75. The decline translates to a Rs17.73 per kg reduction in LPG consumer price.
OGRA stated that the price cut primarily results from a 9.8pc decline in the Saudi Aramco Contract Price (CP), which serves as a benchmark for local LPG pricing. Although the average exchange rate of the US dollar recorded a marginal increase of 0.38% during the same period, it was not enough to offset the downward trend in international LPG prices.
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