The Government of Pakistan has officially revised petroleum prices in its latest fortnightly review, announcing a significant reduction in petrol rates while slightly increasing the price of high-speed diesel (HSD). The new prices came into effect today, August 1, 2025, and will remain in force until the next review on August 16.
According to a notification issued by the Finance Division late Thursday night, the price of petrol (MS) has been slashed by Rs. 7.54 per liter, bringing it down to Rs. 264.61 from the previous Rs. 272.15. Conversely, the price of high-speed diesel has been increased by Rs. 1.48, taking it from Rs. 284.35 to Rs. 285.83 per liter.
This marks the first petroleum price revision for the month of August and comes after the July 16 adjustment, when both petrol and diesel rates saw considerable hikes—Rs. 5.36 for petrol and Rs. 11.37 for diesel.
A Relief for Motorists?
The decrease in petrol prices offers some respite to private vehicle owners, especially amid rising inflation and persistent economic pressures. However, the increase in diesel prices is likely to have a broader impact, as diesel is heavily used in public transport, agriculture, and goods transportation across the country.
Public reaction has been mixed. Many commuters welcomed the petrol cut, but transport operators and logistics companies expressed concern over the diesel hike. In recent weeks, inter-city bus and wagon services had already raised fares by up to Rs. 100 per passenger in response to surging diesel costs.
Why the Adjustment?
The bi-weekly fuel price adjustments are based on recommendations by the Oil & Gas Regulatory Authority (OGRA), which takes into account global oil price trends, the USD-to-PKR exchange rate, and applicable taxes and levies.
In recent weeks, global crude oil prices have shown volatility due to renewed tensions in the Middle East and disruptions in supply chains. These factors have pushed up import costs for Pakistan, prompting OGRA to recommend moderate adjustments to balance consumer relief and fiscal needs.
Moreover, the government continues to apply certain “climate support” surcharges and petroleum levies, aimed at managing the country’s energy subsidy burden and climate financing commitments.
New Fuel Prices in Pakistan
| Product | New Price (Rs/L) | Old Price (Rs/L) | Change |
|---|---|---|---|
| High-Speed Diesel | 285.83 | 284.35 | +1.48 |
| Petrol (MS) | 264.61 | 272.15 | -7.54 |
What to Expect Next?
The Finance Division has confirmed that the current prices will stay in effect until August 16, 2025, when the next bi-monthly review will be conducted. Market analysts warn that any further instability in international oil markets or local currency depreciation could again impact domestic fuel prices.
As global energy markets remain unpredictable and Pakistan navigates economic reforms under IMF oversight, fuel price adjustments are expected to remain a regular feature of the country’s fiscal policy.
Stay tuned to MediaBites for the latest on energy prices and economic updates.
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