Islamabad, August 31, 2025 – Petrol and diesel prices in Pakistan are expected to witness a slight reduction from September 1, 2025, as international crude oil benchmarks show a downward trend and the local currency strengthens against the US dollar.
The Ministry of Finance will finalize the fortnightly adjustment after reviewing the working paper submitted by the Oil and Gas Regulatory Authority (OGRA).
According to industry sources, the ex-depot sale price of petrol may decrease by Rs0.61 per liter, bringing it down from Rs264.61 to Rs264.00 per liter. Diesel, which is the most widely used fuel for transportation and agriculture, is forecast to see a bigger drop of Rs3.13 per liter, reducing its price from Rs272.99 to Rs269.86 per liter.
Other fuels are also expected to follow the same pattern. Kerosene, commonly used in rural households, is projected to fall by Rs1.78 per liter to Rs176.70, while light diesel oil (LDO) could drop by Rs2.61 per liter to Rs159.55 per liter.
The downward adjustment in petrol and diesel prices is largely attributed to international oil market trends, including refining margins and import premiums, which currently stand at $6.37 per barrel for petrol and $3.20 per barrel for diesel. Additionally, the Inland Freight Equalization Margin (IFEM) – Rs8.05 per liter for petrol and Rs6.20 for diesel – along with the Petroleum Levy (PL) and Climate Support Levy (CSL), continues to influence domestic pricing.
In percentage terms, petrol may drop by 0.2%, diesel by 1.1%, kerosene by 0.9%, and LDO by 1.6%. However, these projections do not factor in potential foreign exchange adjustments. If the rupee weakens against the dollar, the projected relief may shrink; conversely, a stronger rupee could lead to a slightly larger decrease in fuel prices.
The Ministry of Finance is expected to announce the final decision later today, with revised petrol and diesel prices becoming effective from midnight of September 1, 2025. Any last-minute fluctuations in global crude oil rates or currency exchange values could lead to minor changes in the final figures.