ISLAMABAD: Petrol prices in Pakistan are poised to decline starting September 1, with estimates suggesting a reduction of up to Rs3.13 per litre.
Sources indicate that the price of petrol might decrease by approximately 61 paisas per litre, while high-speed diesel could witness a more substantial cut of Rs3.13 per litre. Additionally, kerosene oil is expected to become cheaper by Rs1.57 per litre, and light diesel may see a reduction of Rs2.61 per litre. Preliminary calculations regarding these petroleum product adjustments have reportedly been completed.
The Oil and Gas Regulatory Authority (OGRA) is scheduled to submit its recommendations to the Petroleum Division on August 31. Following this, the Prime Minister is expected to give the final approval. If approved, fuel prices across the board—including petrol, diesel, and other petroleum products—are likely to decrease significantly from the beginning of September.
Earlier, on August 16, 2025, the federal government announced the new prices for petrol and diesel for the upcoming fortnight. According to a notification from the Ministry of Finance, the retail price of petrol will remain unchanged at Rs264.61 per litre, while the price of high-speed diesel was reduced by Rs12.84 to Rs272.99 per litre.
The same notification detailed that kerosene oil’s price was cut by Rs7.19 per litre, setting it at Rs178.27, and light diesel’s price was lowered by Rs8.20 to Rs162.37 per litre. Despite these reductions, the government increased the petroleum levy, which affects consumers’ overall relief. The levy on petrol and diesel was raised by Rs2.50 per litre, with diesel’s levy increasing from Rs74.51 to Rs77.01, and petrol’s from Rs75.52 to Rs78.02.
Furthermore, the freight margin on diesel was increased by Rs0.20 to Rs6.24 per litre, while the dealers’ margin for both petrol and diesel was set at Rs8.64 per litre. The distributors’ margin remains at Rs7.87 per litre. Notably, the sales tax rate on petrol and diesel continues to be zero, and a climate support levy of Rs2.50 per litre has been imposed on both fuels.
