ISLAMABAD – April 30, 2025: The federal government has announced a reduction in petrol and diesel prices by Rs2 per liter, effective from May 1, 2025.
The decision was confirmed through a formal notification issued by the Finance Division after recommendations from the Oil and Gas Regulatory Authority (OGRA).
According to the revised pricing, the new rate for petrol will be Rs252.63 per litre, reduced from the previous Rs254.63. Meanwhile, the price of high-speed diesel (HSD) has been brought down to Rs256.64 per litre, compared to the earlier rate of Rs258.64. This marks a modest but much-needed relief for both private motorists and commercial transporters reliant on petrol and diesel.
This announcement comes on the heels of a significant downturn in international oil markets. Global oil prices have seen their sharpest monthly drop since November 2021, with Brent crude slipping by 15% and U.S. West Texas Intermediate (WTI) by 18%. On Wednesday, Brent crude futures fell by $1.16 to settle at $63.09 per barrel, while WTI plunged $2.38 to $58.04. The decline has been largely attributed to Saudi Arabia’s intention to increase output and capture a larger share of the global market, as well as economic pressures from ongoing global trade tensions.
The reduction in petrol and diesel prices is being viewed as the government’s effort to pass on the benefit of easing international oil rates to the domestic market. The move is expected to slightly ease inflationary pressure and reduce transportation and production costs across several sectors.
Just two weeks earlier, on April 16, the government had opted to maintain petrol and diesel prices, citing plans to redirect savings from global oil declines toward development projects. Prime Minister Shehbaz Sharif had stated that while international petrol prices were falling, the benefits would be channelled into public welfare initiatives instead of direct price reductions.
However, the latest cut in petrol and diesel prices reflects a shift in policy—acknowledging the urgent need for immediate consumer relief amid economic challenges.