ISLAMABAD, July 30, 2025 – Pakistan is expected to announce a major reduction in petroleum prices for the first half of August 2025, driven by a strengthening rupee and a notable decline in global oil rates.
Sources indicate that the federal government will unveil the revised petroleum prices later today, with new rates taking effect from August 1, 2025. The move comes amid falling international premiums and favorable foreign exchange trends.
Globally, the premium on petrol has dropped by $2.92 per barrel, from $9.68 to $6.76, while high-speed diesel (HSD) has seen a marginal reduction of $0.05 per barrel, from $3.25 to $3.20. These global corrections, along with the appreciating rupee, have created room for Pakistan to cut domestic petroleum prices.
As per official estimates, petrol prices could be slashed by Rs9.17 per litre, bringing the rate down to Rs263.08 from the current Rs272.25. HSD may see a decrease of Rs3.73 per litre, dropping to Rs280.62 from Rs284.35.
However, not all fuels are seeing a decline. The prices of kerosene oil and light diesel oil (LDO) may rise by Rs3.55 and Rs2.33 per litre, respectively. Kerosene oil is projected to increase from Rs181.33 to Rs184.88, while LDO may rise from Rs167.76 to Rs170.09.
Currently, the petroleum levy (PL) and carbon levy on petrol stand at Rs78.02 per litre, and Rs77.01 per litre on HSD. Inland Freight Equalization Margin (IFEM) is Rs8.89 per litre for petrol and Rs6.04 for HSD.
This anticipated adjustment marks the first petroleum prices revision in August, and Pakistan’s government hopes it will ease inflationary pressure and stabilize the energy market.