Islamabad, April 15, 2025 – A major cut in petroleum prices is expected to be announced by the federal government today, offering much-needed relief to consumers amid falling international crude oil rates.
The expected revision, effective from April 16, could bring down the cost of various petroleum products significantly.
According to early estimates, petrol prices are likely to be reduced by Rs8.50 per litre, while high-speed diesel (HSD) may see a decline of Rs6.96 per litre. Kerosene prices could drop by Rs7.47, and light diesel oil may be reduced by Rs7.21 per litre. These reductions reflect the continuous downward trend in the global oil market, which has shown consistent drops in recent weeks.
The final decision regarding the new petroleum prices will be made later tonight after a formal review by the Oil and Gas Regulatory Authority (OGRA). However, government officials have indicated that adjustments in tax components or freight margins may influence the final figures. The government reserves the right to partially offset international gains by tweaking the petroleum levy or other fiscal tools.
Sources suggest the government may shift Rs4.60 per litre relief through the Inland Freight Equalisation Margin (IFEM), or alternatively, consider imposing a 3 to 5 percent sales tax on petroleum products to manage revenue shortfalls. Such changes will be part of the broader strategy to balance fiscal space with consumer protection.
Last month, the government maintained petroleum prices but increased the levy, alongside announcing a reduction in electricity tariffs for the general public. Now, the government is also considering financial relief to domestic oil refineries, which have reported Rs13 billion in losses this fiscal year due to shrinking profit margins, tax exemptions, and inventory depreciation.
If implemented as forecasted, the expected drop in petroleum prices will ease inflationary pressures, lower transportation costs, and bring relief to millions of Pakistanis already burdened by the high cost of living. All eyes are on the upcoming announcement tonight, which is likely to shape public sentiment and market reactions in the days ahead.