Diesel prices to soar, petrol may dip in Pakistan

Pakistan is likely to revise petroleum product prices for the next 15 days, with diesel expected to become significantly costlier while petrol may see a slight reduction, according to industry sources.

The government revises the prices of petroleum products every fortnight in line with changes in global oil prices.

Currently, the price of petrol is PKR 265.45 per liter and that of high-speed diesel PKR 278.44.

According to the industry’s Initial working, prepared in light of global market trends, petrol could become cheaper by PKR 1.96 per liter, while high-speed diesel may increase by PKR 9.60 per liter, the sources said.

Kerosene is projected to rise by PKR 8.82 per liter and light diesel oil by PKR 7.15 per liter, they added.

The Oil and Gas Regulatory Authority (OGRA) will send its detailed price working to the Petroleum Division on November 15.

The Petroleum Division and the Ministry of Finance will then finalize a joint assessment, which will be forwarded to the prime minister for approval.

Following the prime minister’s decision, the Ministry of Finance will announce the revised prices, which will come into effect for the next two weeks from November 15.

On October 13, Pakistan increased the price of petrol by PKR 2.43 per liter and that of high-speed diesel by PKR 3.02 per liter.

Fuel prices in Pakistan are influenced not only by global crude prices but also by the government’s tax structure, particularly the Petroleum Development Levy (PDL).

The PDL is a fixed amount per liter levied on petroleum products and is a key source of non-tax revenue for the federal government.

As part of commitments made under the International Monetary Fund (IMF) program, Pakistan has gradually increased the levy on petrol and diesel in recent months.

The government can impose a maximum PDL of PKR 90 per liter on petrol and diesel under the Finance Act 2025. At present, the PDL on diesel is around PKR 77 per liter and that on petrol PKR 78 per liter. Even when global oil prices fall, domestic price reductions may be limited if the government chooses to maintain or increase the levy to meet fiscal targets.