Govt hits the brakes on fuel prices, cuts Rs8 a litre
The government on Thursday slashed the price of petrol by Rs7.54 per litre while raising that of high-speed diesel (HSD) by Rs1.48 per litre for the next fortnight.
The HSD price increase will come into effect from August 1, 2025. However, it has reduced the price of petrol for the next fortnight that will remain effective till August 15.
The finance ministry in a statement said that the Government of Pakistan's Finance Division has announced new petroleum product prices that will be effective from August 1, 2025.
It said that the price changes were determined after reviewing international market trends and considering recommendations from Oil and Gas Regulatory Authority (OGRA) and other relevant ministries.
According to statement, the price of HSD has witnessed an increase of Rs1.48 per litre, bringing the new price to Rs285.83. The existing price was Rs284.35 per liter.
The government has decreased the price of petrol by Rs7.54 per litre. The petrol will be available now at the new price of Rs264.61 per litre. The previous price was Rs272.15 per litre. These revised prices will be in effect for the next fortnight.
Earlier, consumers had witnessed a massive increase in the prices of petroleum products as government had increased the price of HSD by Rs10.39 per litre effective from July 1, 2025.
The high speed diesel is widely used in the agriculture and transport sectors. Therefore, fresh increase in its price will bring inflationary impact for the consumers.
The farmers use this fuel for tractors whereas transport sector also use it. Therefore, the cost of transport goods would go up, resulting in higher inflation across the country.
The government has also raised the price of petrol by Rs8.36 per litre from July 1.
Petrol is used in motorbikes and cars and is considered to be an alternate of the compressed natural gas (CNG).
The gas utilities had stopped supply of indigenous gas to the CNG stations especially in Punjab province and therefore, these CNG outlets had been using imported gas over a decade.
The recent reduction in price of petrol is a big relief for the motorbikes and cars.
Pakistan is a net importer of oil and import around 85 per cent of total petroleum products to meet the domestic needs. The local oil and gas exploration companies produce crude oil to meet 15 per cent of the total oil needs.
Therefore, the fluctuation in global oil prices also impact the domestic oil prices.
The consumers are also paying higher tax in form of petroleum levy on the petroleum products.They are paying over Rs77 per litre petroleum levy on diesel and petrol.
LPG Prices
The Oil and Gas Regulatory Authority (OGRA) has also significantly reduced the price of Liquefied Petroleum Gas (LPG) for the month of August 2025 to provide relief to consumers amid ongoing inflationary pressures.
According to the latest notification issued by the Authority, the regulator has set a new consumer price of LPG at Rs2,541.36 for an 11.8 kg domestic cylinder effective from August 1, 2025 with a reduction of Rs209.24 or 7.6 per cent compared to July's rate of Rs2,750.60.
The producer LPG price has also been reduced from Rs191,802.01 per ton in July to Rs174,069.26 per ton in August, reflecting a similar decrease of Rs17,732.75. The decline translates to a Rs17.73 per kg reduction in LPG consumer price.
OGRA stated that the price cut primarily results from a 9.8pc decline in the Saudi Aramco Contract Price (CP), which serves as a benchmark for local LPG pricing. Although the average exchange rate of the US dollar recorded a marginal increase of 0.38% during the same period, it was not enough to offset the downward trend in international LPG prices.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
19 hours ago
- Business Recorder
Exchange rate adjustment for PSO drives hike in HSD price
ISLAMABAD: An ex-change rate adjustment of Rs 3.21 per litre on high-speed diesel (HSD) for Pakistan State Oil (PSO), a major importer, has driven up HSD price in the fortnightly review for the first half of August. On Thursday, the Finance Division announced a Rs 1.48 per litre increase in High-Speed Diesel (HSD) price, while petrol's price decreased by Rs 7.54 per litre. Additional factors contributing to the increase in HSD prices include an enhanced petroleum levy, raised from Rs 74.51 to Rs 77.01 per litre. The petroleum levy on petrol was also raised from Rs 75.52 to Rs 78.02 per litre. Petrol price cut by Rs7.54, HSD's up by Rs1.48 A presidential ordinance was issued on 15th April 2025, which lifted the 70 rupee per litre cap on the petroleum levy. Finance Bill 2025-26 removed the relevant clause of the Fifth Schedule thereby empowering the Federal Government to change the levy and pre-empting the need for an extension of the presidential ordinance. A carbon levy has also been imposed at the rate of 2.50 rupees per litre on both HSD and petrol, a condition for the $ 1.4 billion Resilience and Sustainability Facility from the International Monetary Fund. High-Speed Diesel saw a minor 20 paisa increase in the Inter-Freight Equalization Margin (IFEM), from Rs 6.04 to Rs 6.24 per litre while IFEM on petrol decreased by 19 paisa - from Rs 8.89 to Rs 8.70 per litre. Average of Platts with incidentals and duty was raised on HSD from Rs 177.89 to Rs 180.36 per litre. Whereas, the average of Platts with incidentals & duty on petrol decreased by Rs 8.26 per litre from Rs 167.51 to Rs 159.25 per litre. On year to year basis, petrol sales rose by 6 percent to 7.6 million tons, supported by higher automobile sales and relatively lower fuel prices compared to 2024. HSD volumes grew 10 percent to 6.89 million tons, benefiting from improved agricultural and transport sector activity during parts of the year, although seasonal variations remained a factor. Copyright Business Recorder, 2025
Business Recorder
a day ago
- Business Recorder
HSD price increased by Rs1.48/litre
ISLAMABAD: An ex-change rate adjustment of Rs 3.21 per litre on high-speed diesel (HSD) for Pakistan State Oil (PSO), a major importer, has driven up HSD price in the fortnightly review for the first half of August. On Thursday, the Finance Division announced a Rs 1.48 per litre increase in High-Speed Diesel (HSD) price, while petrol's price decreased by Rs 7.54 per litre. Additional factors contributing to the increase in HSD prices include an enhanced petroleum levy, raised from Rs 74.51 to Rs 77.01 per litre. The petroleum levy on petrol was also raised from Rs 75.52 to Rs 78.02 per litre. Petrol price cut by Rs7.54, HSD's up by Rs1.48 A presidential ordinance was issued on 15th April 2025, which lifted the 70 rupee per litre cap on the petroleum levy. Finance Bill 2025-26 removed the relevant clause of the Fifth Schedule thereby empowering the Federal Government to change the levy and pre-empting the need for an extension of the presidential ordinance. A carbon levy has also been imposed at the rate of 2.50 rupees per litre on both HSD and petrol, a condition for the $ 1.4 billion Resilience and Sustainability Facility from the International Monetary Fund. High-Speed Diesel saw a minor 20 paisa increase in the Inter-Freight Equalization Margin (IFEM), from Rs 6.04 to Rs 6.24 per litre while IFEM on petrol decreased by 19 paisa - from Rs 8.89 to Rs 8.70 per litre. Average of Platts with incidentals and duty was raised on HSD from Rs 177.89 to Rs 180.36 per litre. Whereas, the average of Platts with incidentals & duty on petrol decreased by Rs 8.26 per litre from Rs 167.51 to Rs 159.25 per litre. On year to year basis, petrol sales rose by 6 percent to 7.6 million tons, supported by higher automobile sales and relatively lower fuel prices compared to 2024. HSD volumes grew 10 percent to 6.89 million tons, benefiting from improved agricultural and transport sector activity during parts of the year, although seasonal variations remained a factor. Copyright Business Recorder, 2025
Business Recorder
2 days ago
- Business Recorder
Lower US tariffs to aid Pakistan's exports, says govt
The government on Friday said that a revised tariff agreement with the United States will enhance market access for Pakistan and support outbound trade. 'The Government of Pakistan is pleased to announce the successful conclusion of tariff-related discussions with the United States,' read a statement released by the Ministry of Finance. As per the outcome of these talks, a tariff of 19% will be applicable for Pakistani exports to the US market, which is significantly lower than the initially proposed 29%. On Thursday, US President Donald Trump announced new tariffs of up to 41% on goods imported from dozens of countries, including Pakistan, citing persistent trade imbalances and a lack of reciprocity in bilateral trade relationships. 'This decision reflects a balanced and forward-looking approach by the US authorities, keeping Pakistan competitive relative to other South and Southeast Asian countries. In particular, this tariff level is expected to support Pakistan's export potential, especially in key sectors such as textiles, which remain the backbone of the country's export economy,' read the statement. The finance minister said that it remains in close coordination with relevant stakeholders, and believes that the current tariff arrangement presents a significant opportunity to expand Pakistan's footprint in the US market. 'It is now essential for Pakistani exporters and trade bodies to adopt an aggressive and focused marketing strategy to capitalise on this development,' it said. The ministry said it believed that in addition to textiles, there is substantial potential for growth in other sectors. 'The government is committed to facilitating exporters through policy support, market intelligence, and trade promotion initiatives,' it said. According to the statement, the Pakistani government seeks close cooperation with the United States in the areas of investment, artificial intelligence, cryptocurrency, mines & minerals, energy, and other emerging sectors. 'Pakistan will continue to engage closely with President Trump and the US administration to promote the shared goals of economic development and mutual prosperity,' it concluded.
