In a major relief for the public, the Government of Pakistan has announced a reduction in petrol prices by Rs 5.66 per litre, lowering the new rate to Rs 263.02 per litre from the previous Rs 268.68.
This decision will take effect on October 16, 2025, as per an official notification from the Finance Division.
“The government has decided to reduce the prices of petroleum products after reviewing recommendations by the Oil and Gas Regulatory Authority (OGRA),” said the official statement.
Detailed Fuel Price Breakdown
The price adjustments affect multiple petroleum products across the country, offering broad-based relief:
| Fuel Type | Previous Price (Rs/litre) | New Price (Rs/litre) | Change (Rs) |
| Petrol (MS) | 268.68 | 263.02 | –5.66 |
| High Speed Diesel (HSD) | 276.80 | 275.41 | –1.39 |
| Superior Kerosene Oil (SKO) | 184.97 | 181.71 | –3.26 |
| Light Diesel Oil (LDO) | 165.50 | 162.76 | –2.74 |
The reductions reflect declining international oil prices and the government’s commitment to passing on the benefit to consumers.
Reason Behind the Price Cuts
According to the Finance Division, the price revision is part of the bi-weekly petroleum price review mechanism. The rates are adjusted based on:
- Global crude oil price fluctuations
- Exchange rate movements
- Import and distribution costs
- OGRA recommendations
“These adjustments are intended to provide relief to the public and support economic activity by lowering transportation and production costs,” the Finance Division added.
The government hopes that the price cut will help reduce inflation and ease the cost of living, particularly in the transport and agricultural sectors, which depend heavily on fuel.
Public and Economic Impact
The price reduction is expected to have several immediate benefits:
- Lower transportation fares: Both public and goods transport sectors will see reduced costs.
- Eased inflation: A decline in fuel prices can lower overall consumer goods prices.
- Boosted business sentiment: Reduced operational costs for industries dependent on logistics and fuel.
However, analysts caution that the long-term impact will depend on global oil market stability and domestic currency performance.
“While this move provides short-term relief, sustainable pricing will require consistent fiscal discipline and monitoring of global trends,” remarked an energy sector analyst.
Future Outlook
The next fuel price review is expected at the end of October 2025. Market experts suggest that further adjustments could follow if international oil prices continue to decline.
The government reaffirms its commitment to maintain transparency and fairness in fuel pricing and promptly reflects global market changes in local rates.
