Pakistan cuts petrol prices, raises diesel slightly

The Pakistan government has announced a significant reduction in petrol prices, offering relief to consumers amid ongoing inflationary pressures.

According to a notification issued by the Ministry of Finance on Thursday night, the price of petrol has been reduced by PKR 7.54 per litre, while the price of high-speed diesel (HSD) has been increased by PKR 1.48 per litre.

The new prices, effective from August 1, 2025, are:

• Petrol: PKR 264.61 per litre

• High-Speed Diesel: PKR 285.83per litre

Officials said the adjustment reflects recent fluctuations in global oil prices and exchange rates. The notification marks a rare drop in petrol prices after successive increases over the past two fortnights.

A leading analyst described the petrol price cut as a “positive development for the public,” aimed at easing the burden on transportation and related sectors.

The fortnightly review of petroleum prices is part of Pakistan’s pricing mechanism tied to international oil trends, exchange rate movements, and tax policies including the Petroleum Development Levy (PDL).

The sharp decline in petrol rates during the current fortnight is a rare reversal in recent weeks, potentially reflecting easing international crude prices or regulatory adjustments in levies like Petroleum Development Levy (PDL). Meanwhile, diesel continues to climb, though at a much slower rate than prior hikes.

Historically, fuel prices in Pakistan are revised every fortnight, based on global price shifts and exchange rate fluctuations. Between early and mid-July, petrol saw a sharp increase of PKR 5.36, and diesel surged by PKR 11.37 – driven by volatile crude prices amid geopolitical tension around late June and early July.