Massive Drop in Petrol Price Expected in Pakistan from 16 August

ISLAMABAD – August 11, 2025: The government is likely to lower the prices of petrol and diesel from August 16, bringing some relief to the public.

In the past 11 days, global oil prices have dropped sharply. Brent crude went down by $5.72, falling from $71.70 to $65.98 per barrel. US crude also dropped by $5.71, now priced at $63.48 per barrel.

Officials said the new prices of petroleum products in Pakistan will be announced on August 15. The rates will take effect from August 16. The drop in international oil prices means local fuel prices may also go down.

Earlier this month, on August 1, the government cut petrol prices by Rs7.54 per litre, but increased diesel prices by Rs1.48 per litre. This was part of the routine fortnightly adjustment.

Current Fuel Prices in Pakistan (as of August 1):

• Petrol: Rs264.61 per litre

• High-Speed Diesel (HSD): Rs285.83 per litre

The decision was made after reviewing international prices. It was also based on the Oil and Gas Regulatory Authority (Ogra) recommendations.

Petrol is mostly used in motorcycles, rickshaws, and small cars, making it vital for the working class. Diesel, on the other hand, powers trucks, tractors, trains, and buses. Any increase in diesel usually raises food and transport costs.

Expected Reductions:

Oil sector insiders earlier predicted a Rs9 cut for petrol and Rs3.50 for diesel. This was due to falling global prices and a drop in import premiums.

For example, the import premium on petrol fell from $9.70 to $6.75 per barrel. Tensions in the region have eased, helping prices go down.

Taxes Still High:

Even with no General Sales Tax (GST), the government is charging up to Rs98 per litre in levies:

• Petrol levy & climate levy: Rs78.02 per litre

• Diesel levy & climate levy: Rs77.01 per litre

• Customs duty: Around Rs20–21 per litre

LPG Prices Also Reduced:

Ogra recently announced a Rs17.7 cut in LPG per kilogram. Now, an 11.8 kg LPG cylinder costs Rs2,541.36, down from Rs2,750.60 in July. This is the third monthly drop. In May, the price was Rs2,892.91, and in June, Rs2,838.31.

The price change is linked to the Saudi Aramco Contract Price and the rupee–dollar exchange rate.

Safety Concerns Remain:

A parliamentary committee raised concerns over LPG transportation. Out of 2,000 LPG bowsers in the country:

• Only 800 are registered

• Only 247 have valid Ogra licences

Lawmakers warned that this is a major safety risk, calling it a “regulatory disaster in waiting.