Govt cuts petrol price by Rs7.54, hikes diesel by Rs1.48 per litre

August 01, 2025 (MLN): The federal government has reduced the price of petrol by Rs7.54 per litre to Rs264.61 for the next fortnight, effective August 1, 2025, according to a late Thursday notification issued by the Finance Division.

Meanwhile, the price of high-speed diesel (HSD) has been increased by Rs1.48 per litre to Rs285.83.

The latest revision reflects changing trends in the international oil market and follows recommendations from the Oil and Gas Regulatory Authority (OGRA) and relevant ministries, the notification stated.

The ex-refinery price has declined by Rs1.22 to Rs183.57/litre, compared to Rs184.79/litre on July 17.

The Inland Freight Equalization Margin (IFEM) has risen by Rs0.20, from Rs6.04/litre to Rs6.24/litre.

As a result, the subtotal of ex-refinery and IFEM components stands at Rs189.81/litre, down Rs1.02 from Rs190.83/litre previously.

The Petroleum Development Levy (PDL) has been raised by Rs2.50 to Rs77.01/litre from Rs74.51/litre. The Climate Support Levy remains unchanged at Rs2.50/litre.

Margins for Oil Marketing Companies (OMCs) and dealers remain steady at Rs7.87/litre and Rs8.64/litre, respectively.

The revised price of Rs285.83/litre includes all these components and reflects the updated pricing structure for HSD as of August 1, 2025.

Fuel prices in Pakistan are revised fortnightly based on global oil prices, exchange rate fluctuations, and domestic taxation.

The changes have direct implications for inflation and the cost of living, particularly due to Pakistan’s reliance on imported fuel.

Petrol, commonly used in motorcycles, rickshaws, and private vehicles, is now slightly more affordable—offering relief to the middle- and lower-income groups.

However, the increase in diesel prices could keep inflationary pressures elevated.

Diesel powers heavy transport, agriculture machinery, and trains, and any hike tends to raise logistics costs and food prices across the board.

The new fuel prices will remain in effect from August 1 to August 15, 2025.

To note, on July 16, the government raised petrol prices by Rs5.36 to Rs272.15 per litre and diesel by Rs11.37 to Rs284.35 per litre.

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