Pakistan’s government has decided to maintain petrol prices at their current level while reducing diesel prices by Rs3 per litre starting September 1, 2025. The adjustment, announced by the Ministry of Finance, also includes minor reductions in kerosene and light diesel oil prices, offering slight relief to consumers amidst economic challenges.
Fuel Price Adjustments for September 2025
The Ministry of Finance has outlined the updated fuel prices effective from September 1, 2025, following recommendations from the Oil and Gas Regulatory Authority (OGRA). These changes reflect global oil market trends and domestic economic factors. Here are the details:
- Petrol: Remains unchanged at Rs264.61 per litre.
- High-Speed Diesel (HSD): Reduced by Rs3 to Rs269.99 per litre.
- Superior Kerosene Oil (SKO): Decreased by Rs1.46 to Rs176.81 per litre.
- Light Diesel Oil (LDO): Lowered by Rs2.40 to Rs159.76 per litre.
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These revisions come after a significant diesel price cut of Rs12.84 per litre on August 16, 2025, signaling the government’s effort to ease the financial burden on sectors reliant on diesel, such as transportation and agriculture.
Impact on Consumers and Economy
The decision to keep petrol prices steady provides stability for millions of Pakistanis who rely on petrol for daily commuting, particularly for small vehicles, motorcycles, and rickshaws. The diesel price reduction, though modest, is expected to benefit commercial vehicle operators, farmers, and logistics businesses, potentially lowering transport costs and easing inflationary pressures on essential goods.
A local transporter in Lahore, Ahmed Khan, shared his thoughts: “The Rs3 cut in diesel is a small relief, but every rupee counts. It might help reduce our operational costs slightly, especially after the recent floods increased expenses.”
However, high taxes and levies, including a petroleum levy of over Rs80 per litre on both petrol and diesel, continue to keep fuel costs elevated. The government’s decision aligns with global oil price trends, with Brent crude futures dropping slightly to $68.23 per barrel recently, as reported by international media.
Background and Price Trends
Fuel prices in Pakistan are reviewed every two weeks by OGRA, factoring in international crude oil prices, exchange rates, taxes, freight charges, and distribution margins. The country, a net importer of petroleum, remains sensitive to global market fluctuations. The highest recorded petrol price in Pakistan was Rs331.38 per litre on September 16, 2023, driven by global demand spikes and currency devaluation.
Recent months have seen mixed adjustments. On August 1, 2025, petrol prices dropped by Rs7.54 per litre, while diesel saw a more substantial reduction. The latest cuts in diesel, kerosene, and light diesel oil reflect a slight decline in global oil prices, though heavy taxation limits the extent of relief for consumers.
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What’s Next?
The Ministry of Finance will announce the next price revision on September 15, 2025, based on OGRA’s recommendations and global market conditions. Analysts expect minor fluctuations unless significant changes occur in international oil prices or the Pakistani rupee’s value. For now, the government’s focus remains on balancing economic stability with consumer relief amidst challenges like recent flooding and inflation.
