Petroleum prices in Pakistan are expected to decrease by up to Rs6.30 per litre from Sunday for the upcoming fortnight ending December 15 as slight changes in the international oil market begin to reflect domestically. According to informed sources, the government is likely to announce lower ex depot prices across major fuels, offering some relief to consumers already burdened by rising living costs.
The price of high speed diesel is estimated to decline by around Rs3.70 per litre, which translates to a reduction of about 1.4 percent. Petrol prices are also expected to fall by approximately Rs4.30 per litre or 1.5 percent based on current tax structures and import calculations. This comes after months of upward revisions where petrol and diesel prices surged by Rs12.50 and Rs29 per litre respectively since June 2025.
Kerosene and light diesel oil are also projected to become cheaper. Kerosene prices may drop by Re1 per litre while light diesel oil could see a sharper reduction of Rs6.35 per litre. The current rates stand at Rs194.34 for kerosene and Rs170.80 for light diesel oil. Petrol which currently sells at Rs265.45 per litre is expected to decrease to Rs261.75 per litre. This reduction will benefit private vehicle users, motorcyclists and rickshaw operators who form the core of middle and lower middle income groups.
High speed diesel which fuels the majority of Pakistan’s transport and agricultural machinery is currently priced at Rs284.44 per litre. This may drop to Rs280 per litre. Diesel price movements are considered inflationary because they directly impact the cost of transporting goods including essential food supplies. Transporters had previously increased fares significantly and have yet to revise them despite earlier price cuts.
The government continues to generate substantial revenue from petroleum products. While GST remains zero, various levies and duties contribute heavily to fuel prices. The petroleum development levy, climate support levy, customs duties and margins for oil marketing companies collectively add over Rs100 per litre on major fuels. During the last fiscal year the government collected around Rs1.161 trillion through petroleum levies and expects this amount to rise further in the current year.
