Diesel gets a sharp cut, petrol holds steady for fortnight

MG News | December 16, 2025 at 09:29 AM GMT+05:00

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December 16, 2025 (MLN): The federal government on Monday announced a mixed revision in fuel prices, keeping petrol rates unchanged while delivering a notable cut in the price of high-speed diesel (HSD) for the next fortnight.

According to a notification issued by the Petroleum Division, the price of petrol will remain steady at Rs263.45 per litre, in line with recommendations from the Oil and Gas Regulatory Authority (OGRA).

In contrast, the price of high-speed diesel has been slashed by Rs14 per litre, bringing its new price down to Rs265.65 per litre from Rs279.65.

The revised prices will take effect from December 16 and remain applicable for the next 15 days.

Product	Existing Price (Rs/L)	New Price (Rs/L)	Change
Diesel	279.65	265.65	-14.00
Petrol	263.45	263.45	0

The government reviews fuel prices on a fortnightly basis, factoring in international oil market movements and domestic fiscal considerations.

The latest decision comes after a modest reduction announced earlier this month.

On December 01, 2025, the government had trimmed fuel prices by up to Rs4.79 per litre, cutting petrol by Rs2 to Rs263.45, while diesel was reduced by Rs4.79 to Rs279.65.

At the time, the decline in diesel, often described as the backbone of transport, logistics, and agriculture, was seen as a marginal relief for farmers and freight operators, with potential spillover benefits for overall inflation.

Despite the fresh cut in diesel prices, consumers continue to shoulder a significant tax burden.

Currently, a petroleum levy of Rs97.62 per litre on petrol and Rs75.41 per litre on diesel remains in place, along with a Rs2.50 Carbon Surcharge Levy (CSL). Sales tax on petroleum products, however, stands at zero.

Though the sharper reduction in diesel may help ease cost pressures across supply chains, the government continues to rely heavily on petroleum-sector taxation to support fiscal revenues.

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