ISLAMABAD: The government on Wednesday marginally reduced the prices of high-speed diesel (HSD) and petrol for the next fortnight.

Separately, the Oil and Gas Regulatory Authority (Ogra) notified a hike of up to two per cent in the price of Regasified Liquified Natural Gas (RLNG).

In a late-night announ­cement, the Ministry of Finance said that after reviewing international market trends and on the recommendation of Ogra and relevant ministries, the government had revised fuel prices.

The ex-depot price of HSD was reduced by Rs1.39 per litre (0.5 per cent) to Rs275.41 from Rs276.81. HSD is the main fuel for the transport sector and is considered inflationary as it is widely used in heavy vehicles, trains, and agricultural machinery such as tractors, tube-wells and threshers. It also affects the prices of vegetables and other essential goods. However, transporters rarely pass on the benefit of lower prices to consumers.

The ex-depot price of petrol was decreased by Rs5.66 to Rs263.02 per litre from Rs268.68, showing a reduction of 2.11pc. Petrol is mostly consumed by private vehicles, small cars, motorcycles, and rickshaws, directly impacting the budgets of middle and lower-middle classes.

In a rare move, the government also reduced the prices of kerosene and light diesel oil. The price of kerosene was cut by Rs3.26 per litre (1.76pc) to Rs181.71 from Rs184.97, while light diesel oil was reduced by Rs2.74 per litre (1.65pc) to Rs162.76 from Rs165.59.

The government is currently collecting about Rs99 per litre on both petrol and diesel. Although general sales tax (GST) remains at zero on all petroleum products, the government is charging Rs79.50 per litre on diesel and Rs80.52 on petrol and high-octane products under the petroleum levy and climate support levy. This includes Rs2.50 per litre under the climate support levy.

In addition, around Rs17-18 per litre in customs duty is being collected on both petrol and HSD, regardless of whether they are locally produced or imported. Another Rs17 per litre goes to oil companies and dealers as distribution and sales margins.

Petrol and HSD are the main revenue sources, with monthly sales of around 700,000-800,000 tonnes each, compared to only about 10,000 tonnes of kerosene.

The government collected about Rs1.161 trillion through petroleum levy in FY2025 and expects this to increase by around 27pc to Rs1.470tr during the current fiscal year.

LNG price jumps

On top of about a 2.4pc increase last month, Ogra on Wednesday notified a hike of up to 2pc in the price of RLNG for sales at the transmission stage by the two Sui gas companies for the current month.

Karachi-based Sui Southern Gas Company Limited (SSGCL) serves consumers in Sindh and Balochistan and its system losses at distribution stage stand at 10.6pc. On the other hand, Lahore-based SNGPL provides gas to consumers in Punjab and Khyber Pakhtunkhwa and its system losses at distribution stage are reported at 7.47pc.

According to notification, the RLNG’s sale price for SNGPL at the transmission stage has been increased by 1.79pc to $11.44 per million British thermal units (mmBtu) for October against $11.24 per unit in September.

The sale price at distribution stage for SNGPL has been raised by 2.81pc to $12.23 per mmBtu for current month against $12.01 in September.

The RLNG sale price for SSGCL has also been increased at transmission stage by 1.99pc to $10.08 per mmBtu for October against $9.86 in September.

The sale price at distribution stage for the company has also been increased by 2pc to $11.23 per mmBtu for current month from $11.01 last month.

Ogra said the increase in RLNG price was due to slight increase in delivered ex-ship (DES) price for October.

Ironically, the RLNG distribution prices for SSGCL at $11.23 per mmBtu and for SNGPL at $12.23 are almost $2.72 and $3.73 higher than the average DES, respectively. This is mainly because of the fact that both the LNG importers — Pakistan State Oil (PSO) and Pakistan LNG Limited (PLL) — and port authorities also charge profit margins on account of retainage and margins at the rate of 3.77pc of DES price on top of 7.4pc losses of SNGPL and 10.6pc losses of SSGCL.

The basket RLNG price was based on a total of eight cargoes for October, all under two LNG contracts between PSO and Qatar Gas at an average of about $8.3 per mmBtu — five cargoes at $9.10 and three cargoes at $6.94 per mmBtu. PLL did not import any cargo this month, as it has been deferring its cargoes for many months owing to demand crash.

Published in Dawn, October 16th, 2025