There’s a positive development for inflation-hit citizens as petroleum product prices are expected to decline significantly in the upcoming fortnightly review. The Ministry of Finance is set to officially announce the revised prices tomorrow.
According to sources, the government is likely to reduce the prices of petrol and other petroleum products, with the new rates taking effect from midnight on October 16, 2025.
Initial estimates suggest a reduction of Rs 6.10 per liter in petrol prices, bringing the new price to Rs 262.58 per liter. High-speed diesel is expected to decrease by Rs 0.97 per liter, potentially lowering its price to Rs 275.84 per liter. Kerosene oil may see a cut of Rs 2.75 per liter, and light diesel oil Rs 1.64 per liter, bringing their expected new prices to Rs 182.22 and Rs 163.86 per liter, respectively.
Officials say this relief has been made possible by falling crude oil prices in the global market and the relative stability of the Pakistani rupee against the US dollar. The ex-refinery price of petrol is projected to drop from Rs 162.96 to Rs 156.86 per liter, while diesel’s ex-refinery price may decline from Rs 174.28 to Rs 173.31 per liter.
Industry sources attribute the decrease to a slight dip in global demand and partial price corrections in the international market. The current import premium stands at $6.62 per barrel for petrol and $3.20 per barrel for diesel.
Petroleum levy and carbon surcharge stand at Rs 80.52 per liter on petrol and Rs 79.51 on diesel. The Inland Freight Equalization Margin is Rs 8.69 per liter for petrol and Rs 6.19 per liter for diesel. No exchange rate adjustments have been taken into account in this review.
Experts believe the expected reduction will ease inflationary pressure and lower transportation and logistics costs. The combination of a stable rupee and softened global oil prices has created temporary room to provide relief to consumers.
