Diesel prices to drop, petrol may rise slightly from Dec 16

Diesel prices in Pakistan are expected to fall by Rs. 13.69 per liter from December 16, while petrol prices may see a small increase of Rs. 1.43 per liter, according to estimates by Arif Habib Limited.

The changes come after a sharp drop in international oil prices and a normalization of price spreads in the domestic market. Data from Arif Habib Limited shows that the average international price of diesel (gas oil) fell by 7.8% to $81.40 per barrel in the first half of December, compared to $88.27 per barrel previously. Petrol (gasoline) prices also edged down to $75.20 per barrel.

The Pakistani rupee remained largely stable against the US dollar, averaging 280.59 during the same period.

The expected reduction in diesel prices is due to lower global oil rates and normalizing domestic margins. However, analysts warn that the government might increase the petroleum levy (PL) on diesel to help meet fiscal year 2026 revenue targets.

Oil marketing company (OMC) margins may also be raised by Rs. 0.61 per liter in the coming fortnight, pending approval from the Economic Coordination Committee (ECC).

In contrast, petrol prices are projected to rise slightly, from Rs. 263.45 per liter to Rs. 264.87 per liter.

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