A downward revision in fuel prices is likely to take effect from August 1, 2025, offering much-needed relief after persistent increases over the past two months.
According to preliminary reports, the federal government may slash petrol prices by Rs6 to Rs7 per litre, bringing the expected rate down to Rs265–266. Diesel prices may also dip slightly, by about Rs1 to Rs2 per litre, potentially lowering the rate to Rs282.
The development comes as petrol prices have surged by nearly Rs18–20 per litre since the beginning of June, when rates hovered around Rs250. Currently, petrol is priced at Rs272.15 per litre and diesel at Rs284.35.
The likely cuts are attributed to improving economic indicators and declining global oil prices. With inflation showing signs of moderation, economic analysts suggest there is fiscal space to ease fuel costs without risking budgetary imbalance.
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For millions of Pakistanis grappling with soaring living expenses, a cut in fuel prices would bring significant, if limited, respite. From transport costs to basic goods, fuel prices have a ripple effect across the economy.
The Finance Division is expected to make the official announcement by the end of this week. Any adjustment will depend on final calculations involving import costs, exchange rates, and global oil benchmarks.
Fuel prices in Pakistan are revised every two weeks based on recommendations by the Oil and Gas Regulatory Authority (OGRA). The decision is then finalized by the Finance Ministry.
Observers say a reduction in fuel prices could slightly ease inflation and improve consumer sentiment, especially among low and middle-income groups most affected by recent hikes.