On July 31, 2025, the government of Pakistan announced a reduction in the price of petrol by Rs7.54 per litre, bringing it down to Rs264.61 effective from August 1 to August 15.
In contrast, the price of high-speed diesel (HSD) increased by Rs1.48 per litre, raising it to Rs285.83 for the upcoming fortnight. The Finance Division noted that these adjustments are in line with international market trends and recommendations from the Oil and Gas Regulatory Authority (OGRA).
This follows a significant HSD price hike of Rs 10.39 per litre and a petrol increase of Rs 8.36 per litre on July 1, 2025. The Oil and Gas Regulatory Authority (OGRA) also cut liquefied petroleum gas (LPG) prices by Rs17.73 per kg for August, setting the 11.8 kg domestic cylinder at Rs2,541.36, down Rs209.24 or 7.6% from July.
HSD, used in agriculture and transport, may fuel inflation with higher transport costs for goods. Farmers and transporters face increased expenses, potentially raising prices across sectors. Petrol, an alternative to compressed natural gas (CNG) for motorbikes and cars, offers relief amid CNG shortages in Punjab, where outlets rely on imported gas.
Pakistan imports 85% of its petroleum products, making prices sensitive to global fluctuations. Consumers pay over Rs 77 per litre in petroleum levy on both fuels. The LPG cut, driven by a 9.8% drop in Saudi Aramco Contract Price, provides relief amid rising energy costs, despite a 0.38% US dollar exchange rate increase.
These changes aim to balance fiscal needs with consumer relief. The government continues monitoring international trends to adjust prices bi-monthly. Pakistan’s reliance on imports underscores the need for local production boosts to stabilise costs.
