Islamabad, December 13, 2025 – The government is set to reduce prices of all petroleum products by up to Rs 11.85 per litre for the last fortnight of 2025, starting December 16, following a decline in international oil prices. However, consumers may not see the full benefit as margins for oil marketing companies (OMCs) and dealers have increased.
According to sources, the ex-depot price of high-speed diesel (HSD) is expected to drop by approximately Rs 11.85 per litre, or 4.2%, while petrol may see a minor reduction of around Rs 0.36 per litre (0.1%). Kerosene oil and light diesel oil (LDO) are likely to decrease by Rs 11.70 (6.1%) and Rs 10.01 per litre (6.1%) respectively. Current rates for kerosene and LDO are Rs 192.86 and Rs 163.77 per litre.
The ex-depot price of petrol currently stands at Rs 263.45 per litre and is expected to fall to Rs 263.09 per litre. HSD may decrease from Rs 279.65 to Rs 267.80 per litre.
On December 9, the Economic Coordination Committee (ECC) approved an additional Rs 2.56 per litre margin for petrol and diesel to improve profitability for OMCs and their dealers.
Despite a zero General Sales Tax (GST) on petroleum products, the government levies Rs 78 per litre on diesel and Rs 82 per litre on petrol and high-octane fuels under the petroleum development levy and climate support levy, including Rs 2.50 per litre CSL.
The government collected approximately Rs 1.161 trillion through petroleum levies in FY 2024-25 and expects a 27% increase to Rs 1.470 trillion in the current fiscal year. Analysts say these adjustments will provide relief to consumers while sustaining revenue streams.