ISLAMABAD: The prices of all petroleum products are estimated to go down by up to Rs12 per litre on Monday for the next fortnight ending Dec 31 in view of variation in the international market.

Based on existing tax rates, the informed sources said the ex-depot price of high speed diesel (HSD) has been estimated to drop by about Rs11.80 per litre (over 4pc) depending on final calculations, while petrol rate may be kept unchanged as the estimated reduction was less than a rupee per litre.

The government may also build about Rs1.28 per litre additional cost to the prices to accommodate 61 paise and 67 paise per litre higher margins to oil companies and their dealers, respectively, as approved earlier this week by the Economic Coordination Committee (ECC) of the Cabinet.

The ex-depot prices of kerosene and light diesel oil (LDO) are also estimated to reduce by Rs11.50 (6pc) and Rs10 per litre (6pc), respectively. The kerosene and LDO rates currently stand at Rs192.86 and Rs173.77 per litre, respectively.

The ex-depot petrol price currently stands at Rs263.45 per litre. Petrol is mostly used in private transport, small vehicles, rickshaws and two-wheelers and has a direct bearing on the budget of middle- and lower-middle class. The ex-depot price of HSD stands at Rs279.65 per litre which may drop to Rs268 per litre on Dec 15.

Most of the transport sector runs on HSD. Its price is considered inflationary as it is mostly used in heavy transport vehicles, trains and agricultural engines like trucks, buses, tractors, tube-wells and threshers and particularly adds to the prices of vegetables and other eatables.

Transporters had already increased their fares on the basis of about Rs27 per litre increase between May and August and have not reversed despite Rs9 per litre cut. The government is currently charging about Rs100 per litre on petrol and about Rs96 per litre on diesel.

Although, general sales tax (GST) is zero on all the petroleum products, yet the government is charging Rs78 per litre on diesel and Rs82 per litre on petrol and high octane products on account of petrol levy and climate support levy. This also includes Rs2.50 per litre climate support levy (CSL)

Published in Dawn, December 13th, 2025