Govt keeps petrol price unchanged, slashes diesel by Rs2

May 16, 2025 (MLN): Despite a drop in global oil prices, the federal government has decided to maintain the petrol price at Rs252.63 per litre for the next 15 days. Meanwhile, the price of high-speed diesel (HSD) has been reduced by Rs2 to Rs254.64 per litre, as per a notification issued by the Finance Division on Thursday.

The prices of kerosene oil and light diesel oil have also been reduced. Kerosene has been slashed by Rs5.04, now priced at Rs164.65 per litre. Light diesel oil will now be available at Rs150.65 per litre, down from Rs155.33.

The decision follows a meeting of the Economic Coordination Committee (ECC), which opted to pass on the benefit of lower international prices to refineries, oil marketing companies, and fuel dealers instead of directly to consumers.

Petrol, widely used by private vehicle owners, rickshaws, motorcycles, and small cars, is a key expenditure for middle- and lower-middle-income households. Any change in its price tends to directly affect household budgets.

In contrast, HSD plays a major role in powering the country’s freight and agricultural sectors, including trucks, buses, trains, and farm machinery like tractors and tube wells.

A change in diesel prices is considered inflationary due to its effect on the transportation cost of essential goods, including food items.

With the latest adjustments, consumers see partial relief, particularly in diesel and oil products used in agriculture, while those relying on petrol continue to bear the existing cost.

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