The federal government has announced a reduction in fuel prices for the upcoming fortnight. According to an official notification issued by the Petroleum Division, the new prices will be effective from December 1, 2025. The price adjustments are based on recommendations from the Oil and Gas Regulatory Authority (OGRA).
The government has implemented the following changes for the next 15 days. The price of petrol has decreased by Rs 2.00 per litre. Its new price is Rs 263.45 per litre, down from Rs 265.45 previously. The price of high-speed diesel (HSD) has seen a more significant cut. It has been reduced by Rs 4.79 per litre, bringing the new price to Rs 279.65 from Rs 284.44.
This price reduction is expected to lower the cost of living and improve business operations. High-speed diesel is a key fuel for the transport and agricultural sectors. A decrease in its price typically lowers freight costs and reduces farmers’ expenses. Petrol is primarily used in cars and motorcycles. The price cut will offer direct relief to a large number of private vehicle owners across the country.
Read: Pakistan Increases Diesel Price by Rs6, Maintains Petrol Rate for Fortnight
The notification also highlights the current tax composition on these products. Consumers are paying a petroleum levy (PL) of Rs 97.62 per litre on petrol and Rs 75.41 per litre on high-speed diesel. A customs duty (CSL) of Rs 2.50 per litre is applied to both products. There is currently no sales tax being charged on either petrol or high-speed diesel.
The government has increasingly relied on the petroleum levy for revenue collection. This levy is entirely retained by the federal government, unlike sales tax, which is distributed among the provinces.
