The Finance Division has confirmed that the petrol price in Pakistan will remain unchanged for the first half of September 2025, while the cost of high-speed diesel (HSD) has been reduced by Rs3 per litre. According to the official notification, the new HSD price stands at Rs269.99, while petrol continues to retail at Rs264.61 per liter.
The decision, based on recommendations from the Oil and Gas Regulatory Authority (Ogra), comes as part of the government’s fortnightly price review of petroleum products. Alongside petrol and diesel, the Finance Division also announced a reduction in the prices of superior kerosene oil by Rs1.46 per litre and light diesel oil by Rs2.40 per litre.
Petrol remains the most widely used fuel for private cars, motorcycles, rickshaws, and small vehicles. Any fluctuation in its price directly impacts the daily budgets of middle and lower-middle-income households. On the other hand, diesel plays a much larger role in determining inflationary pressures as it powers heavy transport vehicles, trains, buses, and crucial agricultural machinery such as tractors, threshers, and tube-wells. A reduction in HSD prices is therefore expected to provide some relief in the supply chain of essential goods, particularly food items.
This announcement follows a recent trend of adjustments aimed at stabilizing energy prices. Just two weeks earlier, on August 16, the government had slashed diesel prices by Rs12.84 per litre, while petrol remained unchanged. The prices of kerosene and light diesel were also cut by Rs7.19 and Rs8.20 per litre, respectively.
The Finance Division highlighted that these revisions are in line with broader economic measures being taken by the government. Earlier this week, the Economic Coordination Committee (ECC) approved multiple key initiatives, including a financial bailout package for Pakistan Television (PTV), recovery of Rs47 billion in petroleum levy arrears from Cynergico Refinery, and reallocation of captive levy funds on gas to reduce overall electricity tariffs.
These measures are designed to address fiscal challenges while easing the burden on ordinary citizens and industries struggling with high energy costs. Analysts suggest that maintaining petrol prices while lowering diesel rates is a calculated move to strike a balance between controlling inflation and managing government revenues through petroleum levies.
ALSO READ
Chinese Garment Firm Sets Up Special Economic Zone to Boost Pakistan
For many transporters, farmers, and small businesses, the decrease in diesel prices offers immediate relief. However, the unchanged petrol price means that the majority of middle-class commuters will see no reduction in their fuel expenses. Experts warn that unless global crude prices stabilize, the government will continue to face pressure in maintaining a balance between public relief and revenue needs.
FAQs
What is the current petrol price in Pakistan?
As of September 1, 2025, the petrol price in Pakistan remains steady at Rs264.61 per litre. This rate has been maintained without any upward adjustment, providing some relief to consumers amid rising inflation and global oil market volatility.
What is the new diesel price in Pakistan?
The government has announced a Rs3 per litre cut in the price of high-speed diesel (HSD), bringing it down to Rs269.99. This reduction is expected to ease transportation costs and help stabilize prices of essential commodities in the market.
Why is diesel price more inflationary than petrol?
Diesel plays a crucial role in powering heavy transport vehicles, trains, and agricultural machinery. Since it drives logistics and crop production, any fluctuation in diesel prices quickly impacts food costs and supply chains, making it more inflationary compared to petrol.
How often are petrol and diesel prices revised in Pakistan
Fuel prices in Pakistan are typically reviewed every 15 days by the Finance Division based on recommendations from the Oil and Gas Regulatory Authority (Ogra). This fortnightly review ensures alignment with international oil prices and currency exchange movements.
Did petrol prices change last month?
In mid-August 2025, petrol prices were kept unchanged, but diesel saw a reduction of Rs12.84 per litre. At the same time, the government also cut prices of kerosene and light diesel oil, providing some relief to transporters and households.
