Pakistan’s fuel consumers will see a mixed adjustment in petroleum prices starting August 16, 2025, as the government revises rates in line with the latest international market trends. High-speed diesel (HSD) is set to become cheaper by Rs. 11.50 per litre, while petrol will see a slight price hike of Rs. 1.40 per litre.
Global Market Trends Driving the Change
The Ministry of Energy attributes these price revisions to fluctuations in the global oil market over the past two weeks. International petrol prices increased by about 15 cents per barrel, while diesel prices dropped by roughly $4.50 per barrel. This difference has allowed for a notable cut in diesel rates while limiting the increase in petrol prices.
A mild appreciation of the Pakistani rupee against the US dollar also played a role in cushioning diesel import costs, providing some relief for the transport and agricultural sectors that heavily depend on diesel.
Current and Revised Fuel Prices
Before this adjustment, petrol was priced at Rs. 264.61 per litre after a Rs. 7.54 reduction in the previous review, though it had seen a cumulative Rs. 20 increase over the four fortnights prior. HSD was at Rs. 285.83 per litre, following a Rs. 1.48 cut earlier this month, despite experiencing a sharp Rs. 27 rise since mid-May.
In addition to diesel and petrol, kerosene oil and light diesel oil (LDO) will also become cheaper, with reductions of Rs. 6 and Rs. 7 per litre, respectively.
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Impact on Consumers and Sectors
The reduction in diesel prices is expected to benefit sectors such as public transport, goods transportation, and agriculture, potentially lowering operational costs and helping stabilize commodity prices. However, the modest petrol price increase could put slight upward pressure on urban commuting costs.
According to an official statement, “These adjustments are driven by fluctuations in global oil markets and recent movements in the exchange rate.”
Looking Ahead
With petroleum prices directly tied to global crude oil trends and currency exchange rates, future adjustments will continue to reflect market volatility. While the diesel price cut offers some respite, experts caution that any sustained rise in international oil prices could reverse the current relief in upcoming reviews.
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