Pakistan reduces petrol, diesel prices by PKR 6

Pakistan has reduced the prices of petrol and diesel by PKR 6 for the next two weeks, according to an official notification issued on Wednesday.

The government revises the price of petroleum products every fortnight based on any increase or decrease in global oil prices.

The Ministry of Finance notification stated that the price of petrol has reduced by PKR 5.66 per liter, from PKR 268.68 to PKR 263.02, and that of high-speed diesel by PKR 1.39 per liter, from PKR 276.81 to PKR 275.41.

The price of kerosene has been slashed by PKR 3.26 per liter from PKR 184.96 to PKR 181.71. The price of light diesel oil has come down by PKR 2.74 from PKR 165.50 to PKR 162.76.

The prices will take effect on October 16.

Earlier, on September 31, the government increased the prices of petrol and diesel by over PKR 4.

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.

For the current fiscal year 2025-26, the government has set a PDL collection target of PKR 1,468 billion, a growth of 26% from PKR 1,161 billion collected during fiscal year 2024-25.